New Zealand to nearly tripple tourist tax for international visitors
New Zealand to nearly tripple tourist tax for international visitors
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."
Like many major tourist destinations, New Zealand struggles with the impact of tourism on its natural resources and infrastructure. The $35 government fee introduced in 2019 proved inadequate. The government believes the new tax will be competitive and keep New Zealand as a popular tourist destination.
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.
