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New Zealand to nearly tripple tourist tax for international visitors

New Zealand to nearly tripple tourist tax for international visitors

Above: Air New Zealand passenger jet at Kingsford Smith Airport in Sydney, Australia, July 11, 2021. Image copyright: James D. Morgan / Contributor / 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 announced on Tuesday a raise in its International Visitor Conservation and Tourist Levy (IVL) to NZ$100 ($62) from NZ$35 starting from October 1 to "ensure visitors contribute more to public services and high-quality experiences."

  • 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 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.

  • 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.This comes on top of an increase in tourist visas from NZ$211 ($131) to NZ$341 ($211) also on October 1. Visitors holding passports of dozens of countries such as the US and Canada are visa-exempt for three-month stays.


The Spin


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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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