The Ruapehu mayor says the proposed visitor levy sharing scheme may put some money back into tourism destinations but will not fund the infrastructure needed to accommodate the district’s 1.5 million annual visitors.
By Moana Ellis for Local Democracy Reporting
Weston Kirton says National’s plan to share international visitor levy revenue with councils is a step in the right direction.
However, it was “a blunt instrument” that would not come close to covering infrastructure costs created by “huge numbers of visitors” in a district with only 8000 ratepayers to fund local services through rates.
“It’s certainly positive that the government have stepped up, somewhat, to address the issue,” Kirton said.
However, with no major source of local income beyond rates, the small ratepayer base would continue to bear the infrastructure costs of a nationally significant tourism destination.
“Sadly, we don't have any other source of income other than rates, and when you look at the makeup of our community with low-income groups and a relatively high level of deprivation, I think we've got a long way to go to address those issues.”
The Ruapehu district faced major pressures from tourism, including on wastewater, drinking water, roads, parking, waste collection and other services.
“The [plan for] visitor-levy sharing doesn't cover anywhere near the costs that we need for our community, when we have such an influx all year round now.
“We've got some serious issues with wastewater, with drinking water.”
Last month’s water supply emergency in Ohakune – when a break in the town’s raw water intake pipe left people without water during the height of the ski season – was an example of the financial strain facing the council.
“The incident we had just two or three weeks ago was just what we're saying – we couldn't have that water line connected to the new plant, because we couldn't afford it.”
Ohakune experiences large winter influxes to the two Ruapehu ski fields, while attractions such as the Tongariro Crossing, Whanganui River canoeing, the Tongariro and Whanganui national parks, and cycling bring visitors throughout the year.
None of that came with the funding to support infrastructure development “that we desperately need”, Kirton said.
Ruapehu’s infrastructure burden was unusual because of the district’s relatively small permanent population and dispersed communities.
“We have a rating base of around 8000 ratepayers and to accommodate their needs in various communities, we have six wastewater treatment plants to address, so it's a unique situation.”
The mayor has previously criticised National’s decision to rule out a bed tax, saying tourism-heavy districts need a fairer way to make visitors contribute to infrastructure costs.
At the end of August, Kirton told Local Democracy Reporting that the decision left Ruapehu ratepayers carrying too much of the cost of infrastructure used by visitors.
The closure of historic hotel Chateau Tongariro was an ongoing issue that had cost the district tourism revenue.
“We lost the Chateau two or three years ago, and we're fighting hard to get that back.”
Kirton said the loss of the Chateau represented about 30% of the district's hotel bed nights, which under the proposed levy funding model would have brought roughly another $100,000 in levy revenue.
The hotel has been closed since February 2023, when former lessee KAH New Zealand shut the business. A formal process to find a private operator to revive the Chateau and associated buildings at Whakapapa Village began in March.
Kirton said the district was now waiting on Conservation Minister Tama Potaka to decide the outcome.
LDR is local body journalism co-funded by RNZ and NZ On Air
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