New Zealand has announced a sharp increase in its International Visitor Conservation and Tourism Levy, which will rise from NZ$35 (£16.52) to NZ$100 (£47.20) starting from 1 October. The government says the increase is aimed at boosting economic growth and ensuring visitors contribute to the upkeep of public services and high-quality experiences.
However, Tourism Industry Aotearoa, New Zealand’s independent tourism body, has expressed concerns that the steep hike could deter potential visitors, making it “incredibly expensive to visit.” The country’s remote location, high airfare costs, and now increased entry taxes could act as barriers for international tourists, who are drawn to New Zealand’s Māori culture and stunning natural landscapes.
Rebecca Ingram, the chief executive of the association, warned that the country’s tourism recovery is lagging behind other global destinations, and the new levy could harm New Zealand’s competitiveness. New Zealand saw nearly 3 million international visitors in 2023, around 75% of pre-pandemic levels, but still short of the numbers needed for full recovery.
Tourism Minister Matt Doocey defended the tax increase, saying that NZ$100 represents less than 3% of the average tourist’s expenditure, and that New Zealand remains competitive compared to countries like Australia and the UK. Visitors from Australia and the Pacific islands, who form a significant portion of New Zealand’s tourists, are exempt from the levy.
The increased levy will be in addition to visa fees, which are also set to rise on 1 October. Other countries like Indonesia, Spain, and Iceland also impose tourist taxes, typically included in accommodation or ticket prices. For instance, Venice recently introduced a trial €5 tax for day visitors during peak days to combat over-tourism.