New Zealand nearly triples levy on international tourists

investing.com 03/09/2024 - 02:19 AM

New Zealand Triples Entry Fees for Tourists

WELLINGTON (Reuters) – New Zealand will nearly triple entry fees for tourists, the government announced on Tuesday, prompting criticism from the tourism sector that the higher levy will deter visitors.

The government stated that beginning October 1, international visitor and conservation and tourism fees will increase from NZ$35 ($22.20) to NZ$100. This change aims to ensure that visitors contribute to public services and maintain high-quality experiences while in New Zealand.

Like many popular global tourism destinations, New Zealand has faced challenges with the environmental impact of tourists, leading to stretched infrastructure due to large numbers. The previous NZ$35 fee was introduced in July 2019 but did not sufficiently cover the costs related to accommodating so many visitors.

Despite the fee increase, the government believes that it remains competitive and that New Zealand will continue to attract tourists. However, the Tourism Industry Association argues that the higher fees could dissuade visitors at a crucial time, as the sector continues to recover from stringent COVID-19 border closures.

Rebecca Ingram, the association’s chief executive, expressed concerns that New Zealand’s tourism recovery is lagging behind global trends and that this increase may further hinder competitiveness.

Stats NZ data showed that travel export receipts for the year ending June 30 were NZ$14.96 billion, down 5% from pre-pandemic levels, with visitor numbers at approximately 80% of those before border closures.

Additionally, the government has raised visitor visa costs and proposed increasing charges for regional airports. Billie Moore, NZ Airports chief executive, described this as a “triple-whammy” for an industry striving for economic recovery.

Note: ($1 = 1.6077 New Zealand dollars)




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