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Snapshot 8:Wed, Sep 4, 2024 7:30:16 PM GMT last edited by JoseMoura

New Zealand Nearly Tripples Tourist Tax for Foreign Visitors

New Zealand toNearly nearlyTripples trippleTourist touristTax tax for internationalForeign visitorsVisitors

Above: A view of the arrivals area as tourists are welcomed back to Auckland International Airport on April 13, 2022 in Auckland, New Zealand. Image copyright: *** GETTY *** Fiona Goodall/Getty Images

The Facts

  • 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."

  • 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.

  • 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

Destination taxes are the future, as most tourists are indeed willing to pay a levy if that helps improving local infrastructure and promotes 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.

AsIt's a matter of fact that New Zealand's troubledtravel and tourism economyindustry continues to recover from the COVID-19 pandemic, lagging behind major markets. Therefore, the governmentproposed proposeshikes toin triplevisa fees and in the touristIVL tax,spells whichdisaster willfor discouragethe visitors.country's Theeconomy feeas hikesthey will make travel to New Zealand more expensive and less attractive, potentiallydiscouraging delayingpotential the rebound in visitor numbers until after 2026visitors. This is not good for country's economy.

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