New Zealand Hikes Tourist Tax By 200% To Support Economy, Biodiversity

New Zealand will drastically raise its international visitor entry charge on October 1st, raising concerns about possible effects on the number of tourists. The International Visitor Conservation and Tourism Levy is going to increase by almost three times, from NZ$35 (Rs 1,825) to NZ$100 (Rs 5,214).

The government of New Zealand has defended the hefty increase, citing it as an essential step to encourage economic expansion and guarantee that tourists contribute equitably to public services and the calibre of experiences provided in the nation. This action is a component of a larger plan to reduce tourism's negative environmental effects while boosting the local economy.

"The International Visitor Conservation and Tourism Levy (IVL) will be raised to NZ$100 to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand," Minister for Tourism and Hospitality Matt Doocey and Minister of Conservation Tama Potaka said.

"The government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years. International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over NZ$11 billion in the year ending March 2024," Mr Doocey said.

"But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate.

"The IVL was introduced in 2019 as a mechanism to ensure international visitors were contributing directly to these costs, the vast majority of which are paid for by New Zealand taxpayers and ratepayers."

"Public consultation by the Ministry of Business Innovation and Employment (MBIE) found 93 per cent of submitters supported raising the IVL, with the main rationale being an increase would be reasonable to help cover the costs of tourism."

"The new IVL remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world."

"A NZ$100 IVL would generally make up less than 3 per cent of the total spending for an international visitor while in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers."

"Increasing the IVL means we can continue to grow international tourism to support economic growth while ensuring international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks and other highly visited areas and improving visitor experiences on public conservation land," Mr Doocey said.

"Taxpayers already contribute close to NZ$884 million a year directly on tourism and conservation, including tourism promotion, natural heritage, and recreation. This money funds Tourism New Zealand, protects biodiversity within the Department of Conservation estate, and provides quality experiences at the likes of Milford Sound, Aoraki/Mt Cook, and the Tongariro Alpine Crossing," Mr Potaka said.