New Zealand to Triple Entry Tax for Foreign Tourists, Sparking Controversy
New Zealand has announced a significant increase in the entry tax for foreign tourists, nearly tripling the cost of the International Visitor Conservation and Tourism Levy from NZ$35 to NZ$100. The move, set to take effect on 1 October, has raised concerns among industry experts and travelers alike.
The government defended the decision, stating that the higher levy is necessary to support economic growth and ensure that visitors contribute to public services and high-quality experiences while in New Zealand. However, Tourism Industry Aotearoa, the country’s independent tourism body, has criticized the move, calling it a barrier to visitors and labeling it as “incredibly expensive to visit.”
New Zealand, known for its stunning Māori culture and dramatic scenery, has long struggled with the challenge of attracting visitors due to its remote location in the South Pacific and associated high airfares. The country’s tourism industry has been hit hard by the COVID-19 pandemic, with borders closed for two and a half years before reopening to foreign visitors in August 2022.
Despite the concerns raised by industry experts, Tourism Minister Matt Doocey remains confident that the increased tax will not deter tourists, pointing out that NZ$100 would make up less than 3% of the average tourist’s spending in the country. He also emphasized that New Zealand remains competitive compared to other popular tourist destinations like Australia and the UK.
The new tax will not apply to visitors from Australia and the Pacific, who make up a significant portion of New Zealand’s international arrivals. The increased levy will be in addition to rising visa fees for some visitors, further adding to the cost of visiting the country.
New Zealand is not alone in implementing tourist taxes, with countries like Indonesia, Spain, France, and Italy also charging visitors for entry. In a global trend to combat over-tourism, cities like Venice have even introduced additional taxes for day trippers during peak periods.
As New Zealand prepares to implement the higher entry tax, the tourism industry is bracing for potential impacts on visitor numbers and overall competitiveness in the global market.
