New Zealand is set to significantly raise its entry tax for foreign tourists, sparking concerns it could deter visitors. The International Visitor Conservation and Tourism Levy will nearly triple from NZ$35 (£16.52) to NZ$100 (£47.20) starting 1 October. The government argues the hike is necessary to support economic growth and ensure that tourists contribute to public services and high-quality experiences.
However, Tourism Industry Aotearoa, the nation’s independent tourism body, warns that the increased fee could make visiting New Zealand prohibitively expensive. The country, known for its rich Māori culture and stunning natural landscapes, already faces challenges due to its remote location and high travel costs.
Rebecca Ingram, CEO of the tourism association, expressed concern that New Zealand’s tourism recovery is lagging behind the global trend, and this price increase may further harm its competitiveness. The levy was first introduced in 2019 to address the strain of high visitor numbers on infrastructure, the environment, and local communities. New Zealand closed its borders during the COVID-19 pandemic for over two years, only reopening to foreign tourists in August 2022, and has since struggled to regain pre-pandemic visitor levels, attracting just under three million tourists in 2023, about 75% of previous numbers.
Tourism Minister Matt Doocey believes the new tax will not be a major deterrent, as it represents less than 3% of the average tourist’s spending in the country. He also noted that New Zealand remains competitive compared to destinations like Australia and the UK. Visitors from Australia and Pacific nations are exempt from the tax, and the majority of New Zealand’s tourists come from Australia, the US, China, and Fiji.
The new levy will coincide with a rise in visa fees for some visitors, effective from 1 October. Tourist taxes are common worldwide, with countries like Spain, France, Iceland, and Indonesia imposing similar charges. Venice, for instance, recently introduced a €5 fee for day visitors on peak days to combat over-tourism.
