The Southland District Council wants to raise the levy from $5 to $15.
The proposal was approved for consultation by the council in September and 121 public submissions were received before the first day of hearings, which was held at yesterday's council meeting.
Thirty-three people asked to speak further on their submissions during the two days of hearings.
Rakiura Adventure Ltd's Manfred Herzhoff said that residents on the island were "appalled" by the proposal.
It would deter visitors to the island and was a "blatant power-grabbing, money-making scheme" by the council.
"Southland District Council has shown itself at this point in time [as] incompetent in managing the island's affairs and having spent vast amounts of money unnecessarily and not for the cause but for the bureaucracy," Mr Herzhoff said.
Mr Herzhoff urged those behind the proposal to take a different approach to raising funds.
Bill Moffatt, of Stewart Island Flights, questioned how the idea for an increase to the levy came about and said that it had been "plucked out of thin air".
He also criticised the council for its "lack of care" for Stewart Island.
Tourism Industry Aotearoa (TIA) industry advocate Rachael Moore said while the organisation supported the original levy introduced in 2012, it could not "see the evidence of the justification behind an increase in the levy".
The levy is the only one of its kind in New Zealand and has earned more than $700,000 for the island since it was introduced.
The remaining public submissions will be heard on Stewart Island today.
