Auckland Mayor Wayne Brown is calling on the Government to reconsider its opposition to a bed night levy, arguing it’s a vital step towards revitalising the city’s struggling economy.
The mayor was responding to calls from Auckland Business Chamber chief executive Simon Bridges, who last week urged the Government to take stronger action to stimulate the economy in the Super City and beyond, amid rising unemployment.
According to the latest Stats NZ data released last week, Auckland’s 6.1% unemployment rate for the June 2025 quarter was the highest of any region and above the national rate of 5.2%, which has climbed to a near five-year high.
“It’s pretty grim... it’s very, very tough in Auckland,” said Bridges, who is also a former National Party leader.
Bridges urged the National Party-led Government to consider serious policy or fiscal stimulus across New Zealand, especially in major cities, to help “get things going”.
The bleak state of Auckland’s economy was underscored by a Herald story this month showing a 6.6% drop in card spending in the central city between April and May 2024 and the same period in 2025. The picture was even starker on Karangahape Rd, where spending plunged by 22.5%.
It had been the worst winter ever, said Helen McIntryre, who has owned a gift and furniture shop on K Rd for 34 years.
Brown backed Bridges’ call for the Government to take stronger action to support the economy during these challenging times, noting Auckland’s 6.1% unemployment rate had implications for the rest of the country.
He said introducing a bed night levy would deliver immediate stimulus by boosting tourism and attracting major events to Auckland.
“There’s no reason the Government couldn’t make a bed night levy an urgent priority and have it in place by next year,” Brown said. “The sector supports it and so do most Aucklanders.”
Brown has been calling on the Government to approve a bed night levy for some time, but Tourism Minister Louise Upston has ruled it out, saying there would be no new taxes.
Today, Upston acknowledged Bridges’ comments and noted the ongoing interest in a bed tax. However, she reiterated that “a tax is not something I’m pursuing this term”.
“The most pressing challenge for New Zealand tourism is that we simply don’t have enough visitors, and I’m focused on growing those numbers.
“This Government is firmly committed to growing the economy, including Auckland’s, and tourism remains a key part of that strategy,” the minister said.
So far this term, the Government has hiked the international tourism levy for visitors to New Zealand by nearly 200% from $35 to $100, and announced international tourists would be charged $20 to $40 at four popular destinations – the Tongariro Crossing, Cathedral Cove, Milford Sound and Aoraki Mt Cook.
Asked about Bridges’ call for a stimulus package on RNZ on Monday, Prime Minister Christopher Luxon said progress would “come through to the big cities eventually”.
“I know it’s difficult – particularly in our big cities... we’ve got to keep doing everything we can, but open to more things and discussing more things, but I think at this stage it’s keep doing what we are doing,” he said.
Herald business editor-at-large Liam Dann backed Bridges’ call for a stimulus package in a weekend column, arguing that Auckland’s economy is “broken” and urgently needed Government attention.
Dann suggested the Government could allocate funding to revive three “dead” buildings in the midtown area – St James Theatre, the vacant Smith & Caughey’s building, and the Sky World indoor entertainment complex. He argued restoring these sites would breathe life back into the city and keep skilled workers employed while the broader economy recovers.
Hospitality New Zealand chief executive Steve Armitage said Auckland had faced significant challenges in recent years, particularly across the hospitality, accommodation, tourism and events sectors.
He supported the introduction of sustainable funding through a levy as soon as possible to create a dedicated and reliable revenue stream to promote tourism, attract major events and conferences, and stimulate spending across hotels, restaurants, retail and entertainment venues.
However, rather than adopting an Auckland-only approach, Armitage said Hospitality NZ favoured a nationwide system applied fairly and consistently. A national framework would better support tourism-related activity, including the attraction and delivery of major and business events.
Localised models risk creating unnecessary complexity and inconsistency, Armitage said.
The mayor said that when Auckland did well, the country did well, saying NZ’s underlying problem was a low-productivity economy that wasn’t exporting enough to the world.
His goal was for Auckland to lead the country on a path to prosperity, saying his 2025 manifesto identified key opportunities for growth in technology, housing and tourism.
Recently, Brown launched the Auckland Innovation & Technology Alliance to attract investment and strengthen the city’s position as a competitive hub for tech and innovation. He’s also working with Housing Minister Chris Bishop to make use of land for faster and smarter growth.
Employers and Manufacturers Association head of advocacy Alan McDonald told RNZ there were some signs of recovery led by the primary sector and in the regions, but in Auckland, which was more about manufacturing and services, hospitality, tourism and education were all down.
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