New Zealand’s Higher Visa Fees Could Lead to Fewer Tourist Arrivals, Tourism Organizations Complain

Key Takeaways

  • The Board of Airline Representatives (BARNZ) and some tourism organizations are worried that New Zealand's increased visa fees will reduce tourist arrivals.
  • Despite a 27 percent increase in visitor arrivals in June 2024 compared to the previous year, numbers are still 17 percent below pre-pandemic levels.
  • Higher fees will likely result in fewer visitors and decreased air connectivity, which will impact cargo space and overall tourism recovery.

Following New Zealand’s announcement that it will increase fees for most visa categories, the Board of Airline Representatives (BARNZ) has reacted, saying that the change will reduce tourist arrivals to the country.

Some tourism organizations have also complained about the need for more government consultation as they do not understand why New Zealand has chosen such a decision precisely when it is experiencing a softening of the demand for international visitors, VisaGuide.World reports.

Just this week, New Zealand authorities revealed the country’s intentions to introduce higher visa fees starting from October 1, 2024, which will affect those who plan to visit New Zealand in the coming summer.

Planned air services for destination New Zealand for summer 2024 reveal just a two percent increase in summer 2023.  New Zealand’s tourism recovery has slowed almost to a standstill.

Cath O'Brien, Executive Director at BARNZ

Increased Feed Will Push International Students Away, Too

The increased fees will also affect international students wanting to pursue their studies in New Zealand. Increasing international student visa costs will reduce New Zealand’s competitiveness as a destination for international students.

In response to this situation, O’Brien suggested that young people planning to visit New Zealand on working holiday schemes should look elsewhere when their visa costs NZ$670.

Given the government has now raised costs for visitors, students and workers who wish to come to New Zealand, adding more cost in the form of an increased International Visitor Levy (IVL) should be taken off the table.

Cath O'Brien, Executive Director at BARNZ

O’Brien also welcomes the proposal to raise the IVL to $100 per person. According to him, a reduction in tourist arrivals will, over time, reduce air connectivity, which will reduce available cargo space to and from New Zealand.

New Zealand Saw Surge in Overseas Visitor Arrivals This June, Still Below 2019 Record

Statistics New Zealand recently revealed a 27 percent increase in visitor numbers in June 2024 compared to June 2023.

However, the numbers are still below arrivals in the year before the pandemic. Under the new fee structure, the cost of a visitor visa will increase by 61 percent, from $130 to $341. Overseas visitor arrivals to New Zealand reached 3.2 million in June 2024, up 676,000 (27 percent) from June 2023.

China, the United States, and Australia mainly drove the increase in visitor arrivals this June. Despite the rise, overseas visitor arrivals in June 2024 were 17 percent lower than the June single-year record of 3.9 million in 2019.

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