New Zealand will nearly triple entry fees for tourists, the government has said, spurring criticism from the key tourism sector that the higher levy will deter visitors.
The government said in a statement on Tuesday it would increase the international visitor and conservation and tourism fees starting on 1 October to NZ$100 ($61.85) from NZ$35 to “ensure visitors contribute to public services and high-quality experiences while visiting New Zealand”.
Australians and travellers from most Pacific nations are exempt from the levy.
Like many popular global tourism spots, New Zealand has struggled with the impact of tourists on the natural environment, with infrastructure stretched by the large numbers. The $35 fee was introduced in July 2019, but this was not sufficient to cover the costs associated with so many visitors.
The government said the fee was competitive and it was confident New Zealand would continue to be seen as an attractive visitor destination.
The tourism minister, Matt Doocey, said the levy ensures “international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks”.
However, the country’s Tourism Industry Association believes the higher fees will discourage visitors, especially as the sector, once New Zealand’s biggest export earner, is still struggling to recover from strict border closures implemented during the Covid-19 pandemic.
“New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness,” said Rebecca Ingram, the association’s chief executive.
More than 3.2 million tourists visited New Zealand last year, including 1.3 million Australians.
The top markets that will be affected by the tourism levy include the US, China, UK, India, South Korea and Germany, which together contributed one million tourists last year.
Data from Stats NZ released on Tuesday showed that travel export receipts for the year ended 30 June were at NZ$14.96bn, down 5% from prior to the pandemic. Visitor numbers, according to the bureau, are roughly 80% of levels before the border closures.
The New Zealand government has also recently increased the costs of visitor visas and there is a proposal to increase charges on regional airports.
It is “a triple-whammy for our sector, which is trying to work hard for New Zealand’s economic recovery”, Billie Moore, NZ Airports chief executive, said.
Reuters and Australian Associated Press contributed to this report
