Mr Boult and senior managers revealed more details of the proposal at a media briefing yesterday, including the key number that it would raise $22.5million a year at current visitor levels.
That would fund more than a third of the estimated $374million in visitor-related capital and operational costs in the council's 2018-28 long-term plan, Mr Boult said.
Although the council calculated it would need an 8.3% levy to cover all those costs, it had chosen 5% after feedback from the accommodation sector.
For a $250 a night hotel room, that equated to $12.50
"Many people spend that on one drink at a bar."
Queenstown Chamber of Commerce chief executive Anna Mickell said the council had initially indicated a level of between 5% and 10%, so it was pleasing it had "come in at the lower end".
The accommodation sector had "significant concerns" about its ability to absorb the costs of a higher levy, so it was relieved its concerns had been heard.
The council announced on March 7 it would hold a non-binding referendum for residents and ratepayers on the proposal.
Provided it gets support from the Government and passes into law, it will be introduced some time after July 1, 2021.
Mr Boult said the Government had not indicated the level of support it wanted to see in the referendum, but he wanted "very strong" support from voters.
It had taken two and a-half years of "intense lobbying" of politicians and government officials to get to this point, and it was important people had their say.
Even the levy's biggest critic, Queenstown hotelier Nik Kiddle, said it was likely to get "overwhelming support" in the referendum.
"As long as people feel they're not having to pay for this themselves, they'll vote in favour of it."
Mr Kiddle, leader of the anti-levy Lakes District Tax Equity Group, said its 130 members continued to believe it was "more fair and equitable" to impose a levy on all beneficiaries of tourism rather than the accommodation sector alone.
He urged the council not to give up lobbying the Government for a GST rebate, which Tourism Industry Aotearoa and Hospitality NZ also favoured.
Destination Queenstown chief executive Graham Budd said he did not want to comment on the level or mechanics of the proposed levy, as those decisions had been made and the council was putting it to a referendum.
He urged people to take advantage of a "pretty unique situation and opportunity" and have their say on the issue.
Council chief executive Mike Theelen said the levy would apply to rooms occupied, rather than beds.
Short-term accommodation was defined as stays of less than four weeks.
It would be paid by all visitors, in addition to their accommodation charge, and would be clearly marked on their accounts.
Revenue from the levy would reduce the council's projected debt by 39% and therefore its interest costs, Mr Theelen said.
"This is new money ... and will provide the council with greater flexibility to deliver projects that are currently unachievable because of funding restraints."
Mr Boult defended the council's lack of an economic analysis on the impact of a levy on visitor numbers.
"It's been introduced in umpteen places around the world, and it's been proven to have absolutely no effect."
