It's thought ACT’s alternative to a bed tax is the right philosophy, but is too small.
The party's promising one dollar given to local councils for each guest night in their area, funded through GST and levies already paid by visitors.
Leader David Seymour says it could be implemented at the next Budget, rather than needing legislation.
Tourism Holdings Limited chief executive Grant Webster told Ryan Bridge they've been asking for some kind of dividend on GST for decades.
He says the figure needs to be five or ten times bigger than ACT's suggesting.
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