New Zealand to nearly triple tourist tax like NZD 100 for international tourists from Oct 1

New Zealand plans to nearly triple entry fees for international tourists from NZD 35 to NZD 100 starting October 1. The government aims to ensure visitors contribute adequately to public services and manage the environmental impact of tourism. However, industry stakeholders fear this move may deter visitors and hinder the sector’s recovery post-pandemic.

As per the latest development, New Zealand is all set to nearly triple entry fees for international tourists, a move that has sparked criticism from the nation’s vital tourism sector. Announced by the government recently, the new fee structure will see the international visitor and conservation and tourism fees increase from NZD 35 (USD 21.77) to NZD 100 (USD 62.20) starting October 1.

Referring to this, the government stated that the fee hike aims to ensure that visitors contribute adequately to public services and the high-quality experiences New Zealand offers.

The decision comes as the country grapples with the environmental impact of tourism, which has strained infrastructure in popular destinations. Since its introduction in July 2019, the USD 35 fee has proven insufficient to cover the costs associated with managing the influx of tourists. With the new fees, the government hopes to balance the need for sustainable tourism with maintaining the country’s appeal as a top travel destination.

However, the increase in fees has not been well-received by industry stakeholders. The Tourism Industry Association has voiced concerns that the higher fees may deter visitors, especially as the sector struggles to recover from the severe impact of the COVID-19 pandemic. Prior to the pandemic, tourism was New Zealand’s largest export earner, but strict border closures during the global health crisis led to a sharp decline in visitor numbers.

Rebecca Ingram, the association’s chief executive, expressed concern over the impact of the fee increase on the sector’s recovery. “New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness,” she said. Her concerns are in line with the recent data from Stats NZ, which showed that travel export receipts for the year ending June 30 were NZD 14.96 billion, a 5 percent decline from pre-pandemic levels. Moreover, current visitor numbers are hovering around 80 percent of what they were before the border closures.

The government’s decision to raise the entry fees is part of a broader trend of increasing costs for international visitors. Recently, the costs of visitor visas have also been raised, and there is a proposal to increase charges at regional airports. Billie Moore, chief executive of NZ Airports, described the situation as “a triple-whammy for our sector, which is trying to work hard for New Zealand’s economic recovery.