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Snapshot 4:Wed, Sep 4, 2024 3:11:16 PM GMT last edited by Haakan

New Zealand to nearly tripple tourist tax for international visitors

New Zealand to nearly tripple tourist tax for international visitors

Above: German tourists outside Christchurch International Airport in Christchurch, New Zealand, on April 6, 2020. Image copyright: Kai Schwoerer / Stringer / Getty Images News via Getty Images***PLEASE REPLACE WATERMARKED IMAGE***

The Facts

  • On Tuesday, the New Zealand government announced that it will raise the international visitor, conservation, and tourist (IVL) taxes to NZ$100 ($61.85) from NZ$35 on October 1 to "ensure visitors contribute to public services and high-quality experiences while visiting New Zealand."

  • New Zealand's tourism association, Aotearoa, claimed the plans to nearly triple the tourist fees, together with a recent 60% increase in visitor visa costs, would make the nation "incredibly expensive" to visit.

  • During the pandemic, New Zealand closed its border for two and a half years, and it has struggled to return to pre-pandemic tourist numbers, but still haven 't recovered. Tourism is very important for the economy, with international visitors spending over NZ$13.2B ($8.2bn) last year.


The Spin


Destination taxes are the future. Tourist fees in more countries boost infrastructure demand and maintenance costs for local populations. Research from Bangor University in Wales found no evidence that tourist taxes deter visits. New Zealand will benefit from the tourist tax rise and remain a popular tourist destination.


As New Zealand's troubled tourism economy continues to recover from the COVID-19 pandemic, the government proposes to triple the tourist tax, which will discourage visitors. The fee hikes will make travel to New Zealand more expensive and less attractive, potentially delaying the rebound in visitor numbers until after 2026. This is not good for country's economy.


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