Implementing any bed tax or levy would require central government legislation.
Public consultation on Auckland’s 2025/2026 Annual Plan opens at midday today and closes on March 28.
Auckland’s packed summer calendar of major events isn’t just about entertainment – it’s a powerful economic and cultural catalyst that transforms New Zealand’s largest city into a vibrant global destination.
From world-class sporting competitions to cultural festivals, these events create a multiplier effect that benefits the entireregion - and often the whole country.
The issue we face as a city though is that attracting events doesn’t come cheap. They often take years of funding before they are finally secured. At present, there is no sustainable long-term funding model other than the ratepayer. We can’t keep tweaking an annual budget by changing priorities or just putting rates up every time.
It needs to be a systematic change to keep it going.
This is why Auckland Council’s Annual Budget will be asking residents their views about how to fund major events. One idea is to ask government to create the ability to charge a bed night visitor levy.
A levy would be set at a small amount, 2.5-3% of each night’s room price. A user-pays model, that New Zealanders who travel know is common overseas.
Times are tough for many and my colleagues and I around the Town Hall table recognise that. Some will ask whether major events are a nice-to-have. Maybe Aucklanders want the council to just focus on infrastructure and the basics.
My view is that major events are a mark of an international city. It is good for the economy of Auckland, and New Zealand too.
The economic impact of major events extends far beyond ticket sales. When Auckland hosts international events like the ASB Classic tennis tournament or the inaugural SailGP, visitors fill our hotels, dine at local restaurants, and shop in our retail centres.
This tourism surge provides a vital boost to local businesses, particularly in the hospitality sector.
International visitors, lured by these incredible events and activities, travel on to other parts of New Zealand, which also benefit. Last November’s three Coldplay concerts at Eden Park saw a 10% uplift in transtasman tourism from Australia travelling to the concert - and returned a $20 million boost to the economy.
Major events also drive infrastructure improvements and development. The Fifa Women’s World Cup 2023 left a legacy of more than $18m invested in upgraded pitches, lighting and amenities.
Events also strengthen Auckland’s multicultural base and create spaces for community connection.
For two decades Laneway Festival has brought international and local music talent together. The Lantern Festival continues to celebrate our strong Asian communities and cultural ties just as this month’s Pasifika Festival sees Tāmaki Makaurau come alive with the vibrant sights, sounds, and flavours of the Pacific.
Sports events also play a crucial role in building civic pride and international recognition.
Auckland FC’s debut A-League campaign and the city’s first SailGP event position Auckland as a serious sporting destination. These events not only attract visitors, but also showcase our world-class facilities and organisational capabilities to a global audience.
To deliver these events, however, takes sometimes years of work. Plus, they have to be scheduled to prevent overwhelming the city’s infrastructure while ensuring consistent economic benefits throughout the year. That’s council’s job, but without a funding stream to support it, it won’t keep happening.
Auckland FC's Nando Pijnaker celebrates his goal against Melbourne City at Go Media Stadium. Photo / Photosport
A bed night visitor levy requires central government legislation to implement. So far, no government has given us this ability. We need to know if Aucklanders support us advocating for that legislation change to central government.
If we can’t convince government of our case, or get a bed levy done in time, we will have tough choices to make about how we fund the pipeline of events for the next few years.
We can do nothing – and lose our major events such as the ASB Classic, Auckland Marathon, SailGP and Auckland Writers Festival.
We could go back to the targeted rate system on hotels and other accommodation providers, however, this has been the subject of controversy in the past, doesn’t have industry support and couldn’t be implemented in time for next year.
We already rely on voluntary contributions from the sector, but this doesn’t cover the extent of what is needed.
All these options are in the supplementary material attached to our Annual Plan consultation.
