New Zealand increases tourist entry tax

New Zealand will steeply increase an entry tax for foreign tourists in a move some fear could deter visitors.

The cost of the International Visitor Conservation and Tourism Levy will near triple to NZ$100 (£47.20) from NZ$35 (£16.52) from 1 October.

The government said this is to help economic growth and “ensure visitors contribute to public services and high-quality experiences while visiting New Zealand".

But Tourism Industry Aotearoa - the country's independent tourism body - says the higher fee is a barrier to visitors, making it "incredibly expensive to visit".

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

New Zealand first introduced the levy in 2019, as it grappled with the impact of large numbers of visitors on its infrastructure, environment, communities.

During the coronavirus pandemic, the country shut its borders for two and a half years and didn't allow foreign visitors to return until August 2022.

The country has been struggling to return to the visitor levels it saw before the pandemic, while its wider economy recovery has also been weak.

A conservative Nationals-led coalition was voted into power at last year's election on the promise they would improve the economy.

Tourism Minister Matt Doocey argued the new tax cost would not be a huge deterrant, as NZ$100 would make up less than 3% of most tourists' average spend in the country.

He said it remained competitive compared with countries such as Australia and UK, and he remained “confident New Zealand will continue to be seen as an attractive visitor destination by many around the world”.

The tax does not need to be paid by visitors from Australia and the Pacific.

The increased costs will come on top of separate visa fees for some visitors which are also rising from 1 October.

New Zealand is not the only place where tourist taxes exist.

Other countries that charge tourists include Indonesia, Spain, France, Austria, Croatia, Costa Rica, Iceland and Italy.

In most places, the tax is included as part of accommodation, visa or plane ticket costs.

In April, Venice launched a trial where day trippers were charged a €5 tax to visit the city on peak days, in a bid to combat the effects of over-tourism.