Queenstown's bed tax has been put on ice as the district deals with the impacts of Covid-19.
The bed tax was aimed to cover rising infrastructure costs which fall on the district's ratepayers.
The levy received government backing after a non-binding referendum was held last year.
Queenstown Lakes District Mayor Jim Boult said the levy would be needed in the future, but the current focus was on recovery.
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"The bed tax is still the right idea in the longer term, but right now we're parking it up," Boult said.
"It's time will come again in the future but there are other necessities we have to deal with at present."
Visitors would eventually return and pressure would once again grow for the district's infrastructure, he said.
But for now, Boult said the levy plans had been put to bed.