New Zealand hikes tourist tax prompting warning
New Zealand is set to significantly raise its entry tax for international tourists, a move that some fear could discourage visitors. Starting October 1, the International Visitor Conservation and Tourism Levy will increase nearly threefold, from NZ$35 (£16.52) to NZ$100 (£47.20).
The government has stated that this hike aims to support economic growth and ensure that tourists contribute to public services and high-quality experiences while in New Zealand. However, Tourism Industry Aotearoa, the country’s independent tourism organization, argues that the increased fee could be a deterrent, making it “incredibly expensive to visit.”
Known for its Māori culture and stunning landscapes, including glaciers, mountains, volcanoes, and lakes, New Zealand has long been a sought-after destination. Yet, its remote location in the South Pacific, combined with high airfares, has often been a challenge for potential visitors.
Rebecca Ingram, chief executive of the association, warned that this fee increase could further hinder New Zealand’s tourism recovery, which has already been lagging behind global trends and could impact the nation’s competitiveness.
The levy was first introduced in 2019 to address the effects of a large influx of tourists on infrastructure, the environment, and local communities. The country had closed its borders for two and a half years during the coronavirus pandemic and did not reopen to international visitors until August 2022.
The country has been struggling to return to the visitor levels it saw before the pandemic, with just under three million international visitors in 2023, roughly three-quarters of pre-pandemic levels.
Tourism Minister Matt Doocey argued the new tax cost would not be a huge deterrent, as NZ$100 would make up less than 3% of most tourists’ average spend in the country.
He said it remained competitive compared with countries such as Australia and the UK, and he remained “confident New Zealand will continue to be seen as an attractive visitor destination by many around the world”.
The tax does not need to be paid by visitors from Australia and the Pacific. Most visitors to New Zealand are from Australia, the United States, China, and Fiji.
The increased costs will come on top of separate visa fees for some visitors which are also rising from 1 October.
New Zealand is not the only place where tourist taxes exist.
Other countries that charge tourists include Indonesia, Spain, France, Austria, Croatia, Costa Rica, Iceland and Italy.
In most places, the tax is included as part of accommodation, visa, or plane ticket costs.
In April, Venice launched a trial where day trippers were charged a €5 tax to visit the city on peak days, in a bid to combat the effects of over-tourism.
