New Zealand is set to significantly raise the levy charged to international visitors beginning October 1, sparking concerns that the decision could negatively impact the country’s already slow tourism recovery. The International Visitor Conservation and Tourism Levy will almost triple, increasing from NZ$35 to NZ$100. This move is part of the New Zealand government’s broader strategy to ensure that tourists contribute more to the preservation of infrastructure and environmental conservation.
Tourism Minister Matt Doocey defended the levy increase, highlighting that even with the rise, New Zealand’s fee remains competitive compared to other popular tourist destinations such as Australia and the United Kingdom. “We believe New Zealand will continue to be viewed as a desirable travel destination,” Doocey stated, underscoring the levy’s relative affordability compared to global counterparts.
Alongside the levy hike, visa fees for visitors who need them will also increase by NZ$130, reaching NZ$341. These combined cost increases have raised concerns within New Zealand’s tourism industry, which is still struggling with limited airline capacity and a sluggish rebound in travel, particularly from key markets like China.
Before the COVID-19 pandemic, tourism was New Zealand’s largest export sector, even surpassing dairy. However, the industry has faced difficulties in returning to pre-pandemic levels, with just under three million international tourists arriving in 2023, around 75% of previous numbers. Despite these setbacks, tourism continues to generate over NZ$13 billion (about $8 billion) annually for the economy.
Tourism Industry Aotearoa, the nation’s independent tourism body, expressed apprehension over the levy increase, describing it as a potential deterrent for visitors. Rebecca Ingram, the organization’s CEO, highlighted that New Zealand’s tourism recovery is lagging behind global trends, and warned that the levy hike might weaken the country’s competitiveness in the global market.
While the government estimates that the new levy would only account for around 3% of a visitor’s overall spending, IATA’s Xie suggested that New Zealand should focus on bolstering its attractiveness to tourists. He cited Thailand’s recent decision to abandon plans for a tourism tax as an example of how countries can stimulate tourism spending.
The levy hike is part of a broader trend among countries such as Indonesia, Spain, France, and Italy, which also charge tourist taxes, often integrated into accommodation, visa, or flight costs. However, given New Zealand’s ongoing efforts to recover from the prolonged border closures during the pandemic, industry stakeholders are concerned that the levy increase could further slow the nation’s ability to attract visitors.