Auckland Mayor Phil Goff to introduce Airbnb 'bed tax'

A report into Airbnb in New Zealand has found the accommodation platform is worth $660 million a year to the New Zealand economy. 

On Wednesday, Auckland Mayor Phil Goff announced a 'bed tax' will be extended to include Airbnb.

Colleen Pollard has been renting out a double-bedroom in her Epsom home through Airbnb for 18 months.

She says it's a good source of income at $100 a night, and it's fun. 

"I enjoy meeting people, so with that flexibility was a perfect solution for us," she told Newshub.

Many other Kiwis have found Airbnb just as beneficial for renting out houses and apartments.

A Deloitte report into Airbnb in New Zealand found that in 2017, 578,000 stays were booked with Airbnb - that's 1.4 million guests staying in 225 locations around the country.

Airbnb guests spent more than $780 million here in 2017 - 2.8 percent of all tourism expenditure across New Zealand.

On Wednesday, Auckland Mayor Phil Goff announced a targeted rate on accommodation or a 'bed tax' would be extended to Auckland Airbnbs. 

"For say 29 to 135 days then they'd be paying say a quarter of the business rate and three quarters of the residential rate - over 180 days a year it's obviously a business, and it would be treated like a business," he said.

But Hospitality New Zealand says it should apply to all Airbnb accommodation, including single rooms and properties rented for less than 29 days.

"Half of the accommodation providers on Airbnb have single rooms available - and that's still competition for us, so it's not just a whole house," said Hospitality NZ accommodation chair Troy Clarry.

The tax could begin as soon as the next financial year - but for now, it's business as usual for single-room renters like Colleen Pollard.