New Zealand to Triple Entry Tax for Foreign Tourists Amid Concerns of Deterring Visitors
New Zealand to Triple Entry Tax for Foreign Tourists Amid Concerns of Deterring Visitors
New Zealand is set to significantly increase its entry tax for foreign tourists, a move that has sparked concerns among tourism advocates who fear it could deter potential visitors. Starting from October 1, 2024, the cost of the International Visitor Conservation and Tourism Levy (IVL) will nearly triple, rising from NZ$35 (£16.52) to NZ$100 (£47.20).
The New Zealand government has justified the sharp increase, stating that it aims to boost economic growth and ensure that visitors contribute to public services and the high-quality experiences the country offers. Tourism Minister Matt Doocey emphasized that the increased fee is a small fraction of most tourists’ overall spending in the country, typically less than 3%, and argued that New Zealand remains competitive with other global destinations, such as Australia and the United Kingdom.
However, Tourism Industry Aotearoa, the nation’s independent tourism body, has raised alarms over the potential impact of the higher fee on visitor numbers. Rebecca Ingram, the association’s chief executive, warned that the steep increase could be a significant barrier for tourists, particularly given New Zealand’s already high travel costs due to its remote location in the South Pacific. Ingram pointed out that the nation’s tourism sector is still recovering from the effects of the COVID-19 pandemic, which saw New Zealand’s borders closed for over two years. The country welcomed just under three million international visitors in 2023, about 75% of its pre-pandemic levels, and the higher tax could hamper efforts to regain its global competitiveness.
New Zealand first introduced the IVL in 2019 as a measure to manage the environmental and infrastructural impacts of its growing tourist numbers. While the tax is intended to support the conservation of New Zealand’s natural environment and improve tourism infrastructure, its sharp increase has raised concerns among industry stakeholders.
Visitors from Australia and the Pacific, who make up a significant portion of New Zealand’s tourist base, will be exempt from the increased levy. Nonetheless, the new costs will add to the financial burden for tourists from other key markets, including the United States, China, and Fiji. Additionally, visa fees for some visitors will also rise starting from October 1, adding to the overall cost of visiting the country.