The government of New Zealand said on September 3 that it will almost triple its entry fees for tourists, a move that sparked complaints from the country's main travel industry that the increase would discourage travellers.
In an official statement, the government said that it would raise the fees for foreign visitors, conservation, and tourism from NZ$35 to NZ$100 (£47) on October 1, in order to “ensure visitors contribute to public services and high-quality experiences while visiting New Zealand”.
Similar to numerous other well-known tourist destinations worldwide, New Zealand has experienced difficulties due to the overcrowding of its infrastructure, which has strained the natural environment.
When the NZ$35 (£16.50) charge was implemented in July 2019, it was insufficient to offset the expenses related to the large number of tourists.The government declared that the charge was reasonable and expressed confidence in New Zealand's continued appeal as a travel destination.
The country's Tourism Industry Association, however, feels that the increased costs may deter tourists, particularly given that the industry – which was formerly New Zealand's largest export earner – is still recuperating from the severe border closures brought about by the Covid-19 pandemic.
Rebecca Ingram, the association's chief executive, said: “New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness.”
Travel export receipts for last year were NZ$14.96bn (£7bn), a five per cent decrease from the year before the epidemic, according to data from Stats NZ released on September 3. The agency estimates that the number of visitors is about 80 per cent of what it was before to the border closures.Additionally, the cost of tourist visas has recently raised by the New Zealand government, and there is a plan to raise fees at rural airports.
What is a tourist tax?
Tourist tax is a small daily fee that you have to pay, which is usually added to your flight, applied to your accommodation bill, paid in one lump sum at immigration.These taxes are mandatory as they are government-applied levies.
They are also complex because there isn't a universal system. Since every nation or city sets its own prices, it is your responsibility to know what to look for on your bill or to budget for the precise cost of your holiday. Certain taxes are included in the room fee or are charged at a fixed rate, while others are deducted as a percentage of your lodging expenditure. Seasonality, the age of the children, and the kind of lodging or hotel's star level all have an impact.
Additionally, find out if you need to pay two tourist taxes for a single visit.
The overnight tax in Barcelona was raised from €3.25 (£2.75) to €6.75 (£5.70) per person per night, including a regional Catalonia levy which visitors must pay. Similarly, Paris has raised both taxes in order to cover transport expenses related to the recent Olympics.
How many countries have a tourist tax?
Currently there are 22 countries that apply some sort of tourist tax. Here is the full list:
- Austria: Added onto your accommodation bill, and is around 3.2 per cent in Vienna
- Belgium: Mainly below £3.50 for Brussels, and is added onto your accommodation bill
- Bhutan: $100 (£0.91) for adults until September 2027
- Bulgaria: Usually below £1.30
- Caribbean Islands: Not all islands charge tourist tax but St Lucia charges $3 to $6 (£0.85 to £1.69), whereas in the Dominican Republic it may be a little higher.
- Croatia: the cost of tourist tax depends on season and city you’re staying in
- Czech Republic: in Prague, tourist tax typically costs around CZK 50 per night (around £1.71)
- France: from one Euro to more than 10 Euros, depending on the type of accommodation
- Germany: The standard tourist tax for Berlin is five per cent of the accommodation price
- Greece: Depends on your accommodation but it shouldn’t be above £3.50 a night
- Hungary: four per cent of the cost of accommodation per night in Budapest will be charged
- Indonesia: £7.60 a night for Bali
- Italy: The tourist tax depends on the city and could see an increase to 25 euros (£21) a night
- Japan: £5.50 a night
- Malaysia: £1.70 per night
- Portugal: The cost is €2 (£1.68) per night in high season (April to October) in 13 cities
- The Netherlands: The rate for Amsterdam is 12.5 per cent of accommodation price
- Switzerland: Ranges from about CHF 2 (£1.81) to CHF 7 (£6.34) per person per night
- Slovenia: The cost is around €3
- Spain: The fee is €4 (£3.48)
- UK: A few cities including Manchester and Liverpool have rolled out tourist tax, in the form of £1 per person for certain hotels
- USA: £17 for UK citizens applying for a visa called Electronic System for Travel Authorisation
What does a tourist tax pay for?
Tourist tax is claimed to support local economies and are seen as a means of mitigating some of the more negative effects of tourism, such as overcrowding and environmental deterioration.
Every local government will collect tourism taxes for different purposes, and the money collected will be distributed among various pots.
Some are transparent about their financial sources: As per the official tourism website, Bali's admission charge of 150,000 Indonesian rupiah (£7.37) per person has recently been used to preserve the island's natural environments, support regional culture, and enhance tourism-related amenities and legacy.
While Venice's overnight tourist tax, according to Venturini, "has ensured better services for a unique city that has higher maintenance costs than the rest of the world."
