Queenstown is one step closer to taxing its visitors in a bid to cover infrastructure costs.
The government has thrown its support behind a levy for the resort town, saying it will help to introduce a bill to parliament to turn the bed tax into a reality.
If successful, visitors would pay a five percent charge applied to the cost of all short-term accommodation, estimated to raise up to $40 million a year.
The burden of funding infrastructure currently falls on the district's ratepayers, but there are hopes the levy may be a funding lifeline for Queenstown.
Tess Brunton reports.