New Zealand almost triples tax on international tourists, by Reuters

WELLINGTON (Reuters) – New Zealand will almost triple entry fees for tourists, the government said on Tuesday, fueling criticism from the key tourism sector that the higher fee will discourage visitors.

The government said in a statement that it would increase international visitor and conservation and tourism fees from October 1 to $100 ($62.20) from $35 to “ensure that visitors contribute to public services and experiences of high quality while visiting New Zealand”.

Like many popular tourist spots worldwide, New Zealand has struggled with the impact of tourists on the natural environment, with infrastructure stretched by large numbers. The $35 fee was introduced in July 2019, but this was not enough to cover the costs associated with so many visitors.

The government said the fee is competitive and is confident New Zealand will continue to be seen as an attractive destination for visitors.

However, the country’s Tourism Industry Association believes higher taxes will discourage visitors, especially as the sector, once New Zealand’s biggest export earner, is still struggling to recover from strict border closures implemented during the pandemic of COVID-19.

“New Zealand’s tourism recovery is lagging behind the rest of the world and this will further affect our global competitiveness,” said Rebecca Ingram, the association’s chief executive.

Stats NZ data released earlier on Tuesday showed travel export receipts for the year ended June 30 were $14.96 billion, down 5% from before the pandemic. The number of visitors, according to the office, is about 80% of the level before the border was closed.

The New Zealand government has also recently increased the cost of visitor visas and there is a proposal to increase charges at regional airports.

It is “a triple disappointment for our sector, which is trying to work hard for New Zealand’s economic recovery”, said Billie Moore, chief executive of Airports NZ.

($1 = NZ$1.6077)