Foreign travelers wishing to visit New Zealand will be charged to pay NZ$100 instead of the current NZ$35 from October 1 as part of a higher International Visitor Conservation and Tourism Levy (IVL).
The raised fee was introduced to help manage the impact of tourism in the country and ensure higher-quality visitor experiences, VisaGuide.World reports.
According to a recent statement by the New Zealand government, Australian and New Zealand passport visitors are exempt from the fee.
The Government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in ten years. International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over $11 billion in the year ending March 2024.
Tourism and Hospitality Minister Matt Doocey explains that a $100 IVL would typically represent less than three percent of the total expenditure for an international traveler in New Zealand. Thus,= this hike is unlikely to affect the number of visitors, according to him.
Before the COVID-19 pandemic, tourism was New Zealand’s main export sector, surpassing dairy exports. However, the industry has faced challenges in its recovery due to reduced airline capacity and delays in returning travelers from the crucial Chinese market.
Despite these setbacks, tourism remains a significant contributor to the economy, generating over NZ$13 billion ($8 billion) annually and attracting an estimated 3.2 million international visitors in the year ending June.
TIA & IATA Criticize New Zealand’s Decision
The Tourism Industry Aotearoa (TIA) said the hike, along with a recent 60 percent increase in visitor visa fees, would bring the cost of visiting New Zealand to as much as 500 New Zealand dollars ($310) per person, more than double the cost of visiting Canada and two-thirds more than visiting Australia.
In this regard, TIA CEO Rebecca Ingram said that increasing the IVL to $100 could harm the tourism industry, reducing visitor numbers by 48,000 and cutting visitor spending by $273 million.
At the same time, the International Air Transport Association (IATA) also expressed disappointment, describing the hike as a “double whammy” for the sector.
These changes make travel to New Zealand more expensive and less attractive and could further delay the recovery in visitor numbers beyond 2026.
The International Air Transport Association (IATA)
Xie Xingquan, IATA’s Regional Vice President for North Asia and Asia-Pacific, stressed that instead of raising the levy, New Zealand should look at ways to improve the country’s competitiveness as a destination compared to other markets.