New Zealand will significantly increase the levy charged to foreign visitors starting October 1, raising concerns that the move could hamper the country's tourism recovery, which has been slow to return to pre-pandemic levels. The International Visitor Conservation and Tourism Levy will nearly triple from NZ$35 to NZ$100. This increase is part of a broader effort by the New Zealand government to ensure that tourists contribute more to the upkeep of infrastructure and conservation of the environment in the country.
Tourism Minister Matt Doocey defended the decision, stating that the new levy remains competitive compared to other popular destinations such as Australia and the United Kingdom. "The new levy remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world," Doocey said.
In addition to the levy increase, the cost of visas for visitors who require them will also rise by NZ$130, bringing the total to NZ$341, effective from the same date. The combined effect of these price hikes has sparked concerns within the tourism industry, which is still grappling with reduced airline capacity and a slow resumption of travel from key markets, particularly China.
Before the COVID-19 pandemic, tourism was New Zealand's largest export market, even surpassing dairy exports. However, the sector has struggled to bounce back, with just under three million international visitors in 2023, about 75% of pre-pandemic levels. Despite these challenges, the industry still contributes more than NZ$13 billion (approximately $8 billion) annually to the economy.
Tourism Industry Aotearoa, the country's independent tourism body, also voiced concerns, describing the higher fee as a barrier to visitors and warning that it could make New Zealand "incredibly expensive to visit." Rebecca Ingram, the association’s chief executive, pointed out that New Zealand’s tourism recovery is lagging behind global trends and that the levy increase might further dent the country's competitiveness.
While the government estimates that the new levy would constitute only about 3% of the total spending of an international visitor, the IATA’s Xie argued that the focus should instead be on enhancing New Zealand’s competitiveness. He cited Thailand’s recent decision to scrap plans for a tourism tax as an example of how countries can encourage tourism spending.
The levy increase comes at a time when other countries, including Indonesia, Spain, France, and Italy, also impose tourist taxes, often included in accommodation, visa, or plane ticket costs. However, with New Zealand’s tourism sector still recovering from the prolonged border closures during the pandemic, industry stakeholders fear that this latest move could further hinder the country's ability to attract visitors.
Tourism Minister Matt Doocey defended the decision, stating that the new levy remains competitive compared to other popular destinations such as Australia and the United Kingdom. "The new levy remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world," Doocey said.
In addition to the levy increase, the cost of visas for visitors who require them will also rise by NZ$130, bringing the total to NZ$341, effective from the same date. The combined effect of these price hikes has sparked concerns within the tourism industry, which is still grappling with reduced airline capacity and a slow resumption of travel from key markets, particularly China.
Before the COVID-19 pandemic, tourism was New Zealand's largest export market, even surpassing dairy exports. However, the sector has struggled to bounce back, with just under three million international visitors in 2023, about 75% of pre-pandemic levels. Despite these challenges, the industry still contributes more than NZ$13 billion (approximately $8 billion) annually to the economy.
Tourism Industry Aotearoa, the country's independent tourism body, also voiced concerns, describing the higher fee as a barrier to visitors and warning that it could make New Zealand "incredibly expensive to visit." Rebecca Ingram, the association’s chief executive, pointed out that New Zealand’s tourism recovery is lagging behind global trends and that the levy increase might further dent the country's competitiveness.
While the government estimates that the new levy would constitute only about 3% of the total spending of an international visitor, the IATA’s Xie argued that the focus should instead be on enhancing New Zealand’s competitiveness. He cited Thailand’s recent decision to scrap plans for a tourism tax as an example of how countries can encourage tourism spending.
The levy increase comes at a time when other countries, including Indonesia, Spain, France, and Italy, also impose tourist taxes, often included in accommodation, visa, or plane ticket costs. However, with New Zealand’s tourism sector still recovering from the prolonged border closures during the pandemic, industry stakeholders fear that this latest move could further hinder the country's ability to attract visitors.
