National has announced a reset to how funding from the International Visitor Levy (IVL) is distributed, including a new $50 million a year Tourism Priorities Fund to support tourism growth and resilience.
Under the policy, IVL revenue will be split three ways from 1 July 2027: the $50 million Tourism Priorities Fund, $100 million a year to the Department of Conservation, and the remainder paid directly to councils based on their share of international visitor guest nights. National estimates the council portion would total an estimated $385 million over the first four years, rising from $86 million in 2027/28 to $106 million in 2030/31 — without introducing a bed tax.
The government has pointed to the policy’s intent with the new rejigg of the IVL funding allocation to be to back conservation, support tourism growth, and strengthen regional economies. There is also a commitment to not increasing the IVL for at least three years.
Where hospitality fits in
We’re generally supportive of this direction. Funding through the IVL is important to our sector, and it matters that tourism funding conversations recognise hospitality as part of the visitor economy, not just an add-on to it.
That said, several details are yet to be confirmed. Chief among them is what the $50 million Tourism Priorities Fund would actually support — whether hospitality initiatives specifically would be eligible, or whether it’s directed elsewhere within the broader tourism sector. We’ll share more detail as it becomes available.
It’s also worth noting this is a policy announcement made ahead of the election. We’ll continue to monitor developments and keep members updated as more information is confirmed.