New Zealand Set to Triple Tourist Tax for International Visitors

• New Zealand will nearly triple its international tourist tax, increasing the levy from NZ$35 to NZ$100 starting October 1, 2024.
• Australian tourists and visitors from most Pacific nations are exempt from this increase.
• The government aims to use the levy to fund public services and conservation projects, though critics warn it could deter travelers.
• The tourism sector, still recovering from COVID-19 restrictions, is concerned that the higher tax could negatively impact New Zealand’s global competitiveness.

New Zealand to Nearly Triple Tourist Tax Starting October 1

In a move that has sparked debate, New Zealand is set to increase its entry fees for international tourists significantly. Beginning on October 1, 2024, the country will raise its International Visitor Conservation and Tourism Levy (IVL) from NZ$35 to NZ$100 (around $61.85). The announcement has drawn criticism from the tourism sector, which argues that the higher fees could dissuade travelers, particularly as the industry continues to recover from the pandemic-induced border closures.

The New Zealand government defended the decision, stating that the increased levy will help ensure that visitors contribute to public services and enjoy high-quality experiences while touring the country. The levy addresses the strain large numbers of tourists have placed on the country’s infrastructure and natural environment.

Who’s Exempt and Who’s Affected

Visitors from Australia and most Pacific nations will not be subject to the new NZ$100 fee. However, tourists from countries such as the United States, China, the United Kingdom, India, South Korea, and Germany, who collectively brought in one million visitors last year, will be required to pay the new levy.

New Zealand, known for its breathtaking natural landscapes, introduced the original NZ$35 fee in 2019, but officials say it has not been enough to cover the rising costs associated with maintaining the country’s infrastructure and conservation projects.

Tourism Minister Matt Doocey emphasized that the updated levy ensures that international visitors contribute to the preservation of high-value conservation areas and biodiversity projects, especially in national parks. “This move will help protect New Zealand’s natural treasures,” he added.

Tourism Industry Pushback

Despite the government’s confidence that New Zealand will remain an attractive destination for global travelers, the country’s tourism sector has expressed concerns. The Tourism Industry Association, which represents a key segment of the country’s economy, argues that the tripling of the fee could harm New Zealand’s global competitiveness.

Rebecca Ingram, CEO of the association, stressed that tourism is still recovering from the severe impacts of COVID-19 lockdowns and border closures. “New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness,” she said. Before the pandemic, tourism was New Zealand’s largest export earner, with visitor numbers last year reaching 3.2 million, including 1.3 million from Australia.

A ‘Triple Whammy’ for Tourism

In addition to the increased tourist levy, New Zealand recently raised the cost of visitor visas and is considering additional charges for regional airports. Billie Moore, the chief executive of NZ Airports, described the developments as a “triple-whammy” for the struggling tourism industry.

Data from Stats NZ for the year ending June 30, 2024, revealed that travel export receipts were at NZ$14.96 billion, which is still 5% lower than pre-pandemic levels. Tourist numbers have also returned to only 80% of their pre-COVID figures, signaling that the sector still has a long road to full recovery.

The coming months will show whether the increased tourist tax will achieve its intended goal of bolstering conservation efforts without hampering New Zealand’s reputation as a must-visit travel destination.