Labour is proposing a $25 levy on all tourists entering New Zealand, to be spent on improving tourism infrastructure and the environment.
Local Government New Zealand president Dave Cull and Tourism Industry Aotearoa chief executive Chris Roberts join us to discuss the plan.
"What we're concerned with is there are already existing border charges, tourists are already paying a lot of tax especially in GST - about $1.2 billion in GST," Mr Roberts says.
Mr Cull supports the levy plan though. "For us it's about where the need is and who pays for it. The keyword is 'sustainable' because ... the increased tourism numbers put a lot of pressure on our infrastructure in general. That is putting pressure especially on small councils with small rating bases."
Listen to the discussion via the link above, or watch Jacinda Ardern explain the levy in the interview below.