New Zealand Nearly Triples Tourist Tax for Foreign Visitors
The Facts
New Zealand announced on Tuesday an increase in its International Visitor Conservation and Tourist Levy (IVL) to NZ$100 ($62) from NZ$35 ($22) starting from Oct. 1 to "ensure visitors contribute more to public services and high-quality experiences."
The non-refundable tourist tax is charged when applying for a New Zealand Electronic Travel Authority (NZeTA) or most visas, with notable exceptions being permanent residents, Australian citizens, and people from many Pacific Island nations.
The Spin
Narrative A
Destination taxes are the future, as most tourists are indeed willing to pay a levy if it helps improve local infrastructure and promote the sustainable use of local resources. Given that there has been little evidence that such taxes have a negative impact on the flow of visitors, one can only expect them to become more and more common.
Narrative B
It's a matter of fact that New Zealand's travel and tourism industry continues to recover from the COVID pandemic, lagging behind major markets. Therefore, the proposed hikes in visa fees and in the IVL spells disaster for the country's economy as they will make travel to New Zealand more expensive and less attractive, discouraging potential visitors.