New Zealand's Tourist Fee Triples: A Pricey Welcome Awaits
by priyanka roshan | sept 3, 2024
Fee Hike Begins October 1
Starting October 1, New Zealand will nearly triple its International Visitor Conservation and Tourism Levy (IVL), raising the fee from NZ$35 (£16.52) to NZ$100 (£47.20).
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Rationale Behind the Increase
“International tourism brings added costs to local communities, including pressure on infrastructure and maintenance of conservation areas,” said Matt Doocey, Minister for Hospitality and Tourism, in a statement on September 3, 2024.
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IVL's Original Purpose
Introduced in 2019, the IVL was intended to ensure international visitors contribute to these expenses, reducing the burden on New Zealand taxpayers.
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Support for Tourism and Export Goals
The increase is aimed at supporting tourism growth and achieving the government’s goal of doubling exports in the next decade.
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New Zealand’s Allure
New Zealand, known for its Māori culture and stunning landscapes—from glaciers and mountains to volcanoes and lakes—attracts millions of tourists annually.
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Funding Conservation and Visitor Enhancements
The government believes the higher IVL will fund vital conservation projects and improve visitor experiences.
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Criticism of the Fee Hike
However, the fee hike has sparked criticism. Tourism Industry Aotearoa (TIA) argues that tripling the IVL will make New Zealand less affordable and hurt its global competitiveness.
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Impact on Tourism Recovery
TIA Chief Executive Rebecca Ingram stated, “The increase to $100 creates a barrier, making New Zealand incredibly expensive to visit. Our tourism recovery is lagging, and this move will only exacerbate the issue.”
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Recent Decline in Travel Export Receipts
Additionally, recent data from Stats NZ shows travel export receipts fell by 5 percent to NZ$14.96 billion for the year ending June 30.
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Additional Charges Contributing to the “Triple-Whammy”
The government’s recent moves to increase visitor visa fees and regional airport charges are seen as a “triple-whammy” for the sector, according to Billie Moore, Chief Executive of NZ Airports.
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