New Zealand Hikes Tourist Tax: How It Will Affect Your Visit

Planning a trip to New Zealand?

Starting October 1, 2024, the cost of entry will be significantly higher, with the country's International Visitor Conservation and Tourism Levy (IVL) set to nearly triple.

The IVL, originally introduced in 2019 to support environmental conservation efforts, will increase from NZ$35 to NZ$100. This hike comes despite international tourist numbers being down. By June 2024, the country had recovered about 84% of its pre-pandemic visitor levels, compared to the same period in 2019.

Why the Increase?

According to New Zealand’s Minister for Hospitality and Tourism, Matt Doocey, international visitors place additional strain on local infrastructure and conservation areas.

“Tourism brings great benefits, but it also brings costs. This increase will help cover the maintenance and preservation of our natural landscapes,”

New Zealand’s Minister for Hospitality and Tourism, Matt Doocey

International tourists spent over $11 billion in New Zealand between March 2023 and March 2024, further supporting the need for funding to maintain these attractions.

The IVL isn’t the only cost on the rise. Tourist visa prices will also jump from $131 to $211. Travellers from 60 countries, including the UK, US, Canada, Japan, and Singapore, can still enter New Zealand without a visa for stays up to three months, but they’ll need to apply for an e-visa and pay the IVL.

Will the Higher Tax Deter Visitors?

Despite concerns, Minister Doocey believes the higher IVL will have little impact on tourism. He estimates that the NZ$100 fee would make up less than 3% of an average visitor’s total spending in the country. However, some in the industry disagree.

NZ Airports has voiced concerns that the increase will hurt the economy, while Tourism Industry Aotearoa believes it could make New Zealand prohibitively expensive. The association noted that, with visa and tax costs combined, entering New Zealand could soon cost NZ$500 more than double what visitors pay for Canada and 66% higher than the cost for Australia.

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