New Zealand nearly triples levy on international tourists

WELLINGTON: New Zealand will nearly triple entry fees for tourists, the government said on Tuesday, spurring criticism from the key tourism sector the higher levy will deter visitors.

AI Brief

New Zealand will raise visitor fees to NZ$100 from October 1 to address tourisms impact on public services and the environment.
The fee hike may deter tourists and slow the sectors post-pandemic recovery.
Industry leaders fear the higher costs will hurt New Zealands tourism competitiveness and recovery.

The government said in a statement it would increase the international visitor and conservation and tourism fees starting on Oct. 1 to NZ$100 ($62.20) from NZ$35 to “ensure visitors contribute to public services and high-quality experiences while visiting New Zealand.”

Like many popular global tourism spots, New Zealand has struggled with the impact of tourists on the natural environment, with infrastructure stretched by the large numbers. The $35 fee was introduced in July 2019, but this was not sufficient to cover the costs associated with so many visitors.

The government said the fee was competitive and it was confident New Zealand would continue to be seen as an attractive visitor destination.

However, the country's Tourism Industry Association believes the higher fees will discourage visitors, especially as the sector, once New Zealand's biggest export earner, is still struggling to recover from strict border closures implemented during the COVID-19 pandemic.

“New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness,” said Rebecca Ingram, the association's chief executive.

Data from Stats NZ released earlier on Tuesday showed that travel export receipts for the year ended June 30 were at NZ$14.96 billion, down 5% from prior to the pandemic. Visitor numbers, according to the bureau, are roughly 80% of levels before the border closures.

The New Zealand government has also recently increased the costs of visitor visas and there is a proposal to increase charges on regional airports.

It is “a triple-whammy for our sector, which is trying to work hard for New Zealand’s economic recovery,” Billie Moore, NZ Airports chief executive, said.