Chairman Graham Budd - who is also Destination Queenstown (DQ) chief executive - said the $57 million to $80 million per year potentially raised through a border tax on international visitors would not be enough to meet growing tourism needs in the regions.
"While the amount likely to be collected from the levy is worthy, we don't believe it is enough to meet the future funding requirements of the regions, particularly if it has to be shared with conservation programmes," Mr Budd said.
"It might seem odd that we are turning down money but having to split the fund across so many parties is going to significantly reduce what the fund will be able to do."
The levy would be $25-$35 per international visitor.
In a submission to the Ministry of Business, Innovation and Employment, RTNZ calls on the Government to introduce regional visitor levies/funding mechanisms to meet regional needs.
One such mechanism is a bed tax. Queenstown's Mayor, Jim Boult, has been lobbying the Government in the same direction, calling for a $10-per-night bed tax implemented by councils.
"The regions, through their local councils, own many of the tourism assets and infrastructure which needs to be managed and maintained," Mr Budd said.
"In many cases, we are also seeing the need for new facilities to be built.
"These things don't come cheaply and without the security of robust and sustained funding, neither will be possible in the long term."
Mr Budd said regional visitor levies would enable district councils to be "master of their own destinies" rather than relying on time-consuming contestable funds.
"A nationally consistent approach to regional levies is also required to ensure the levy is fairly and consistently collected, at a set amount and exclusively for tourism management and marketing purposes.
"Councils would have a right to levy, if they so wished, to a level set by legislation and for agreed tourism purposes."
The money raised would also pay for "long-term destination planning, development, management and marketing", effectively DQ's remit as a Regional Tourism Organisation.
DQ was recently unable to get enough of its members to vote in favour of a bid to increase its funding from rates.
Mr Budd, in his fortnightly remarks to DQ members and staff, said there were already two existing contestable funds for the regions for tourism purposes, the Tourism Infrastructure Fund and the Provincial Growth Fund.
"[So] DQ has submitted that the total amount collected [through the border levy] should be allocated entirely to conservation purposes."
He said the Department of Conservation, iwi, heritage trusts and regional and local councils should be able to access money raised through the levy, for conservation purposes.
Charitable Trust RTNZ represents 30 RTOs.
A press secretary for Tourism Minister Kelvin Davis said it would be inappropriate to comment while the consultation period was open.
The consultation period on the levy closes on Sunday , after which MBIE will collate and analyse the information to be presented to ministers.
