Tourists wishing to travel to New Zealand could face a fee of up to $100 to enter the country if an option recently proposed by the government is approved.
The increase in the International Visitor Conservation and Tourism Levy (IVL) would be almost three times the current levy, VisaGuide.World reports.
Through a statement, the NZ government also revealed that most foreign visitors have paid a fee of $35 since 2019, when IVL was established, aiming to support a sustainable tourism system where international visitors contribute to the costs of tourism.
Government Considers Increasing IVL in 4 Options Due to Numerous Factors
The issue of increasing the IVL for international visitors outside the government is based on several factors, including the impact of inflation, similar fees in other destinations and other costs for visitors.
The options for IVL that the government has proposed are as follows:
- remaining at $35 per eligible person
- increasing it to $50 per qualified person
- increasing it to $70 per qualified person
- increasing it to $100 per eligible person
The government is also seeking feedback on what the levy should be used for across tourism and conservation, including addressing visitor pressure on mixed-use tourism infrastructure, international marketing, visitor pressure on public conservation estate, and other areas related to tourism.
Moreover, the government believes taxpayers pay for many of the costs imposed on international visitors, including fees. In visitor volumes 2019, the $35 IVL collected about $80 million annually. However, during this period, some estimates put the unfunded costs of international visitors at around $250 million.
Until now, the Queenstown Lakes District Council (QLDC) has tried, unsuccessfully, to implement a county-wide visitor tax in the form of a bed tax.
IVL Expected to Generate Approximately $80 Million in Next 2 Years
More than 80 percent of Queenstown voters backed a visitor charge to support infrastructure in a non-binding 2019 referendum. Still, it has yet to receive the government support it needs to implement. Assuming arrivals match 2019 figures, IVL will generate approximately $80 million annually between 2024 and 2026.
IVL funding is divided into tourism and conservation. In this regard, the New Zealand government has also sought public feedback on which projects within these two zones should receive funding.
The same authority further said that until June 11, public members have time to have their say through a survey or online application.
Visitors bring significant money into the New Zealand economy, and the sector provides jobs and investment opportunities. According to a report from the Ministry of Business, Innovation and Employment, visitor numbers are recovering from the effects of the COVID-19 pandemic.
The UN World Tourism Organization reports that international tourism reached 90 percent of pre-COVID-19 levels worldwide in October 2023, with New Zealand arrivals in late February 2024 at 80 percent of peak visitor volumes in 2019.