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New Zealand is about to make a significant shift in its tourism policy, as the country gears up to nearly triple the tax imposed on international visitors. This bold move, announced on September 3 by the National Party-led coalition government, has ignited a wave of concern within the tourism industry.
Effective October 1, the International Visitor Conservation and Tourism Levy (IVL) will soar from 35 New Zealand dollars ($22) to 100 New Zealand dollars ($62). Tourism Minister Matt Doocey championed the hike, stating that the increased levy will help fund vital conservation projects and enhance the visitor experience in New Zealand’s cherished national parks and other high-traffic conservation areas.
“The new $100 levy represents a modest fraction—less than 3%—of the total spending by international visitors in New Zealand,” Doocey explained. “We believe this adjustment will ensure that tourists contribute fairly to the preservation of our natural wonders and the improvement of public conservation lands.”
Despite these assurances, the move has sparked considerable backlash from the tourism sector. The higher tax rate comes at a time when New Zealand’s tourism industry, a once-thriving export powerhouse, is still grappling with the aftermath of the Covid-19 pandemic and strict border closures.
The IVL, introduced in July 2019, was initially set at $35. However, it has become apparent that this amount was insufficient to cover the growing costs associated with a surge in visitor numbers. The government maintains that the updated fee remains competitive and is confident that New Zealand will retain its allure as a premier travel destination.
Nevertheless, the tourism industry is voicing its concerns. Rebecca Ingram, chief executive of the country’s tourism industry association, warned that the increased levy could dissuade potential visitors. “New Zealand’s tourism recovery is lagging behind global trends, and this price hike will further undermine our competitive edge,” Ingram noted.
Recent data from Stats NZ revealed that travel export receipts for the year ending June 30 fell to NZ$14.96 billion, a 5% decrease compared to pre-pandemic figures. Visitor numbers currently stand at around 80% of their pre-pandemic levels.
Adding to the industry’s woes, the government has also raised the cost of visitor visas and proposed higher charges at regional airports. “It’s a triple-whammy for our sector, which is already working hard to boost New Zealand’s economic recovery,” said Billie Moore, chief executive of NZ Airports.
As New Zealand’s tourism landscape shifts, all eyes will be on how this new levy impacts the nation’s international appeal and the resilience of its tourism sector.
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