While some of the details needed to be ironed out, he hoped the levy would be paid when tourists buy their flight tickets, before they come into the country, "so we don't have any issues at the border".
They would need to ensure it would not be attached to New Zealand residents' tickets.
Accessing the money would work similar to how it does now, in that councils would make a bid.
"Tourism's success means we need more infrastructure to serve all these visitors, especially if we want to attract high-spending tourists who will increase the value of the sector to the New Zealand economy, Faafoi said.
"From Northland to Southland, councils are facing increasing pressure to support growing numbers of tourists without the funds to do it.
"It's time for the Government to help ensure we deliver a world-class experience to tourists, without unfairly burdening local communities.
"It's only fair that the cost of these important projects is recouped from the international visitors who enjoy them.
"There's no evidence that a levy of less than 1 per cent of what the average tourist spends in New Zealand will hurt tourism."
He said that after National introduced a $22 border charge, passenger numbers rose faster than expected.
Steve Chadwick - a former Labour MP - said the city would like to tap into the fund for environmental projects such as upgrading the tributaries feeding into the lakes, like the Puarenga Stream, which needed upgrading.
"We've got beautiful lakes here... They're our treasures and we need to look after them.
"Our ratepayer base is fine and growing but we will never keep up with looking after our environment here, even with our growing ratepayer base here."
Rotorua had about 3.3 million visitors every year - and it was increasing. She didn't think the tax would detract visitors to the city.
"We have long-lobbied for a point of entrance tax. There will be some who don't like it, I'm sure."
"We have always called for this in a high-profile tourism destination... our tourism numbers keen growing and that is the time to make these announcements."
She said the training was vital so the city was geared up for the tourism numbers.
Blair Chalmers, general manager of the Copthorne Hotel and chairman of the Rotorua arm of Tourism Industry Aotearoa, said
"New Zealand is already so expensive... In off-peak periods, shoulder periods, should a major event around the world which tightens up travel, the more expensive destinations will suffer."
He said Rotorua didn't appear to have a problem recruiting within the tourism industry.
Although aimed at tourists, National's campaign chair Steven Joyce said it would have a flow-on effect to New Zealand's economy.
"The tourism industry is a very important industry for us. We're already seen by visitors as a relatively high price destination, they like us but we are high cost."
Although National introduced a $22 border tax on all arrivals to pay for biosecurity and border control, Joyce said Labour's proposed $25 tourism tax would have an impact.Tourism was a competitive industry.
"Somebody sitting in Shanghai or San Francisco has choices of where they go. Yes, they like to come to New Zealand because it's beautiful. They also like Croatia or Alaska or a whole lot of other places they can visit. Already we are seen as an expensive destination because it costs a quite lot to fly here, so yes, you can keep adding taxes if you like but you will make it harder to bring more people here."
He said National had already allocated $102 million for new tourism infrastructure in the Budget, and added $76 million for conservation infrastructure.
The announcement was made by Labour's tourism spokesman Kris Faafoi rather than leader Jacinda Ardern - one of just two so far she has not delivered personally.
The first was Michael Woods' announcement for the "Skypath" across the Harbour Bridge.
Joyce said Labour had now put up five tax proposals - the tourism tax, water charges, an Auckland fuel levy, signals of a capital gains tax and scrapping National's tax cuts.
"It's another day on the campaign trail and Labour seem to be adding new taxes most days. Everything makes a difference and adding five taxes on the economy at once is going to have a significant slowing down effect."
Although Labour has now ruled out income tax hikes, Ardern has not said whether she will introduce other taxes, such as a capital gains tax, in her first term.
The party will hold a Tax Working Group and decide on possible taxes after that but Ardern has reserved the right to introduce them immediately rather than wait for another election to campaign on them.
