New Zealand is set to drastically increase its international visitor entry fee on October 1, raising concerns about potential impacts on tourist numbers. The International Visitor Conservation and Tourism Fee is set to increase almost threefold, from NZ$35 (Rs 1,825) to NZ$100 (Rs 5,214).
The New Zealand government has defended this massive increase, saying it is a necessary step to stimulate economic expansion and to guarantee that tourists contribute equitably to the quality of public services and experiences the country offers. The action is one component of a larger plan to reduce the negative environmental impacts of tourism while boosting the local economy.
“The international visitor Conservation and Tourism Fee (IVL) will be increased to NZ$100 to ensure visitors contribute to public services and high-quality experiences when they visit New Zealand,” Tourism and Hospitality Minister Matt Doocey and Conservation Minister Tama Potaka said.
Mr Doocey said, “The Government is serious about enabling the tourism sector to grow as part of our overall goal to double exports in 10 years. International tourism plays a very important role in New Zealand’s economy, with international visitors spending more than NZ$11 billion in the year ending March 2024.”
“But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher maintenance costs across our conservation areas.
“IVL was introduced in 2019 as a mechanism to ensure international visitors are contributing directly to these costs, the majority of which are paid for by New Zealand taxpayers and ratepayers.”
“A public consultation conducted by the Ministry of Business Innovation and Employment (MBIE) found that 93 per cent of applicants supported increasing the IVL, with the main argument being that the increase would be justified to cover the costs of tourism.”
“The new IVL remains competitive with countries such as Australia and the UK, and we are confident that New Zealand will continue to be seen as an attractive tourist destination by many around the world.”
“In New Zealand an IVL of $100 typically represents less than 3 per cent of an international tourist’s total spend, meaning it is unlikely to have a significant impact on tourist numbers.”
Mr Doocey said, “Increasing the IVL means we can continue to grow international tourism to support economic growth, while ensuring international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks and other highly visited areas, and improving the visitor experience on public conservation lands.”
“Taxpayers already directly contribute around NZ$884 million a year to tourism and conservation, including tourism promotion, natural heritage and recreation,” Mr Potaka said. “This money funds Tourism New Zealand, protects biodiversity within the Department of Conservation estate, and provides quality experiences at places such as Milford Sound, Aoraki/Mount Cook and the Tongariro Alpine Crossing.”