Christopher Luxon announces National's alternative to introducing bed tax

Christopher Luxon will be answering questions about the policy shortly. Watch the livestream below.The National Party has announced its alternative to introducing the bed tax.It would instead distribute money to all councils by resetting how the International Visitor Levy is allocated.Christopher Luxon and Nicola Willis announced the campaign pledge in Auckland - the country's biggest city where its mayor Wayne Brown has been highly critical of the bed tax backtrack.National's finance spokesperson Nicola Willis says from July next year it would put $100 million into the Department of Conservation, $50m into supporting tourism growth and resilience, and the rest would go to councils based on the share of tourists they have.In the first year it's estimated Auckland would receive $19.1m and Queenstown Lakes would be eligible for $17.1m.Other councils would receive funding according to their share of international visitor guest nights."Under National's policy, every territorial authority that hosts international visitors will receive a share of IVL funding, so they can support responsible growth in tourism in their community."Funding would begin flowing to councils from 1 July 2027, around two years earlier than it would with a bed tax," Willis said.National is also making clear it wouldn't increase the visitor levy for at least the next three years, which it says provides certainty to the tourism industry, she said.In 2018 when the levy was first proposed under a Labour-led government, National campaigned strongly against it with then-leader Simon Bridges claiming it was "entirely unnecessary" and "just another tax".After winning power in 2023, the following year the coalition government nearly tripled the $35 fee to $100.Tourism spokesperson Louise Upston said a bed tax would "disproportionately impact New Zealanders booking a weekend away, whether that's for a sports event, a family funeral or to visit friends.""This is a clear, practical alternative to that," she said.Under National's plan it estimates councils would be on the receiving end of an estimated $385 million over the first four years, increasing from $86 million in 2027/28 to $106 million in 2030/31 as visitor numbers grow.