New Zealand’s early decision to increase its tourist tax by 185 percent officially entered into force yesterday, October 1.
The new fee for international visitors now stands at NZ$100, up from the previous fee of $35. This move aims to address the growing impact of tourism on the country’s infrastructure and natural environment, VisaGuide.World reports.
Tourist Tax Will Affect Almost All Foreign Travelers
The increase, which translates to roughly $62 at the current exchange rate – up from about $22 – will affect almost all New Zealand international tourists. Travelers who do not need a visa to enter New Zealand will see this fee included when they apply for the NZeTA (New Zealand Electronic Travel Authority), which is mandatory for entry into the country.
The revised fee now applies to a wide range of international visitors, including those traveling on visitor visas (excluding partner and dependent categories), NZeTA, student visas and various work visa schemes. Notably, travelers from Australia and most Pacific nations remain exempt from the tourist tax.
The country has faced challenges in managing the balance between welcoming tourists and preserving its renowned natural landscapes. The previous tourist tax of NZ$35 was introduced in July 2019 but proved insufficient to cover the costs associated with a high volume of visitors.
Tourism Industry Alarmed by New Zealand’s Tourist Tax Increase & Rising Visa Fees
This new hike in New Zealand’s tourist tax has raised alarms within the tourism sector. The Tourism Industry Aotearoa (TIA) warned that the increased cost of visiting the country and a 60 percent rise in visitor visa fees could lead to significant declines in tourist numbers and spending.
According to TIA CEO Rebecca Ingram, the overall cost for travelers could soar to NZ$500 (approximately $310) per person, more than double the cost of visiting Canada and two-thirds higher than a trip to Australia. Ingram further states that the increase in the International Visitor Levy (IVL) could deter around 48,000 potential visitors, resulting in a loss of approximately NZ$273 million in visitor spending.
Last year, New Zealand welcomed over 3.2 million tourists, with 1.3 million coming from Australia. The most affected markets by the new tax are expected to be the United States, China, the United Kingdom, India, South Korea, and Germany, which collectively accounted for one million tourists in 2022.