Queenstown Lakes District Mayor John Glover has accused National of making policy "in panic" after the party ruled out an accommodation levy it had earlier committed to exploring, describing the move as "a complete u-turn".
National announced on Sunday it would not introduce any new taxes, including a bed-night levy, if re-elected in November - a reversal from Luxon's April commitment to explore a tourism levy.
Speaking to Breakfast on Monday, Glover said the decision to remove the option of visitor levies was "collateral damage from policy being made in panic, in my view".
He argued a levy targeting international visitors was straightforward to design, citing systems used overseas.
"You look at Malaysia, they do this exceptionally well. They distinguish between residents and internationals who pay a local levy," Glover said.
Party leader Christopher Luxon axed both ideas as a part of a ‘no new taxes’ election pledge. (Source: 1News)
He said the current international visitor levy was flawed because only half of tourists paid it.
"Only 50% of international tourists pay that, because we don't charge Australians, we don't charge people from Singapore, and you pay the same amount whether you're in the country for two days or three months. So it's not really proportionate," he said.
Glover said the opportunity to have visitors contribute was "an open goal".
"Our visitors come, they're expecting to contribute, and there's a really good opportunity to take some money," he said. "For whatever reason, this government's just decided they're not going to support tourism, and they're not going to give the communities the tools that they need."
Announcing the policy on Sunday, Luxon defended the decision.
"What we've determined is there was no other way that it wouldn't flow on and actually hit a Kiwi family or a couple going out for a weekend away in Queenstown or in Auckland," he said.
"But we're not going to do it through levelling a tax."
Auckland Mayor Wayne Brown, a long-time backer of the levy, said the move undermined the Regional Deal the Crown signed with Auckland Council in April, which committed to exploring a bed-night levy in 2027.
"A bed-night levy is a user charge, not a general tax," Brown said in a statement. "It would result in no additional rates or taxes on Aucklanders, while enabling Auckland to attract more events, support local businesses and grow the regional economy."
ACT leader David Seymour, who appeared in the Prime Minister's Monday slot on Breakfast which Luxon withdrew from in April, described National's decision as "delicious".
"I love my friends in the National Party, but they're kind of an unguided missile sometimes. Two months ago, they wanted all these taxes and we were arguing, and I said 'no, we can't do this as a Government', now they say 'I was born and bred in a briar patch, we're never going to do it'."
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