New Zealand To Nearly Triple Tax On International Tourists

Many countries, especially those in Southeast Asia, have begun relaxing visa rules to attract more tourists. 

 

From July 22, 2024, Thailand offered 60-day visa-free stays for citizens from 93 countries and territories, an increase from the previous 57. From February 09 of this year, Singapore exempted Chinese passport holders from visa requirements for a stay of up to 30 days. And Malaysia is already visa-free for Chinese tourists for up to 30 days, from December last year and in June, even agreed to extend the visa exemption until the end of 2026. Also visa free for Indian tourists since December 01, 2023 until December 31, 2024 for a maximum of 30 days per visit.

 

New Zealand loves tourists too but it loves money more. And it prefers to get it as upfront payment.

 

FYI, tourism last year contributed about NZD13.2 billion ($8.2 billion) to New Zealand’s economy, accounting for 3.5 percent of gross domestic, making it one of the country’s biggest export industries. 

 

And so, the government announced on Tuesday that it would raise the so-called International Visitor Conservation and Tourism Levy (IVL) from 35 New Zealand dollars ($22) to 100 New Zealand dollars ($62) from October 01.

 

  

Tourism Minister Matt Doocey (right) said the hike would allow the country to grow its tourism industry while ensuring 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”.

 

He maintained that “a $100 IVL would generally make up less than 3 percent of the total spending for an international visitor while in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers”.

 

The fee was introduced in July 2019, but it is claimed this was insufficient to cover the costs associated with so many visitors overwhelming its natural environment and overburdening its infrastructure.

 

Tourism Industry Aotearoa, the peak body for New Zealand’s tourism sector, opposed the new tax, insisting the increase would make the country “incredibly expensive” to visit. TIA asserted that the hike, along with a recent 60 percent increase in visitor visa fees, would bring the cost of traveling to New Zealand to as much as 500 New Zealand dollars ($310) per person, which is two-thirds more than visiting Australia. 

 

I guess the country shouldn't expect to see a surge in tourism anytime soon.