Starting October 1, New Zealand will substantially raise the fee for foreign visitors, prompting worries that this could impact the nation’s tourism rebound, which has been gradually recovering to pre-pandemic levels. The International Visitor Conservation and Tourism Levy will see a substantial rise, increasing from NZ$35 to NZ$100. This change is part of a larger effort by the New Zealand government to ensure that tourists contribute more to the upkeep of infrastructure and the conservation of the country’s natural environment.

Tourism Minister Matt Doocey defended the hike, noting that the updated levy remains competitive with those of other leading destinations such as Australia and the United Kingdom. “The updated levy matches the rates imposed by countries like Australia and the UK. We are confident that New Zealand will continue to be considered an attractive destination for travelers worldwide,” Doocey remarked.

Alongside the levy increase, visa fees for visitors requiring them will also see a rise of NZ$130, bringing the total cost to NZ$341, starting October 1. The combined impact of these fee hikes has raised concerns within the tourism sector, which is already dealing with diminished airline capacity and a sluggish recovery in travel from major markets, especially China.

Prior to the COVID-19 pandemic, tourism was New Zealand’s leading export sector, even outpacing dairy exports. Nevertheless, the industry has faced difficulties in recovering, with fewer than three million international tourists in 2023, reaching only around 75% of pre-pandemic numbers. Despite these setbacks, tourism continues to make a substantial impact, contributing over NZ$13 billion (about $8 billion) to the economy each year.

Tourism Industry Aotearoa, New Zealand’s independent tourism organization, has also expressed worries about the increased fee, labeling it a potential deterrent for visitors and cautioning that it could render New Zealand “exceptionally costly to visit.” Rebecca Ingram, the association’s CEO, highlighted that New Zealand’s tourism recovery is trailing behind global trends and that the rise in levies could further undermine the country’s competitive edge.

Although the government projects that the increased levy will account for roughly 3% of an international visitor’s total expenditure, Xie from the IATA contends that the emphasis should be on boosting New Zealand’s competitiveness. He pointed to Thailand’s recent choice to abandon its proposed tourism tax as an example of how nations can stimulate tourism spending.

The rise in the levy coincides with similar actions taken by other countries, such as Indonesia, Spain, France, and Italy, where tourist taxes are often integrated into accommodation, visa, or flight costs. Despite this, New Zealand’s tourism sector is still rebounding from extended pandemic-related border restrictions. Industry experts worry that this new fee increase could further impede the country’s efforts to draw in tourists.

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