New Zealand plans to nearly triple the tax it levies on international tourists in a move that the government hopes will boost economic growth and support conservation.
The government says the hike will fund conservation efforts and improve visitor experiences. The levy is used to maintain public services that tourists use during their stay in New Zealand and to support tourism sites.
The government is all set to increase the International Visitor Conservation and Tourism Levy (IVL) from NZ$35 (about £16) to NZ$100 (about £47) starting 1 October. The IVL was introduced in 2019 to ensure that tourists help cover the costs associated with tourism in New Zealand.
Tourism and hospitality minister Matt Doocey said “the government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years”.
He stated that the government consulted citizens on the increase and found that 93 per cent of respondents supported raising the IVL, with many agreeing that an increase was reasonable to help cover tourism costs.
“International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over $11bn in the year ending March 2024,” he 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.”
Mr Doocey stated that raising the IVL to NZ$100 would likely have little impact on visitor numbers.
“A NZ$100 IVL would generally make up less than three per cent of the total spending for an international visitor while in New Zealand… ,” Mr Doocey said.
“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.”
However, the tourism industry fears it will make New Zealand more expensive and less competitive, especially given a recent increase in visitor visa fees.
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