The New Zealand government has announced plans to nearly triple entry fees for tourists, a move that has sparked criticism from the tourism sector, which fears the increased costs will deter visitors.
Starting October 1, the government will raise the international visitor and conservation fees from NZ$35 to NZ$100 ($61.85). Officials stated that this fee hike aims to ensure that visitors contribute to public services and have access to high-quality experiences while in New Zealand.
Notably, Australians and travelers from most Pacific nations will be exempt from this fees increase.
Like many popular tourist destinations around the world, New Zealand has been grappling with the impact of tourism on its natural environment, and its infrastructure has been stretched thin due to the influx of visitors. The previous fee of $35, implemented in July 2019, was inadequate to cover the expenses associated with large numbers of tourists.
The government believes that the new fee remains competitive and is confident that New Zealand will continue to attract visitors.
Tourism Minister Matt Doocey emphasized that the levy ensures “international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks.”
However, the Tourism Industry Association of New Zealand argues that the increased fees could discourage tourists, particularly as the sector, once the country’s largest source of export revenue, is still in recovery from the strict border closures due to the Covid-19 pandemic.
“New Zealand’s tourism recovery is lagging behind the rest of the world, and this will further harm our global competitiveness,” stated Rebecca Ingram, the association’s chief executive.
In the last year, over 3.2 million tourists visited New Zealand, including 1.3 million Australians.
The primary markets affected by the increased tourism levy include the US, China, the UK, India, South Korea, and Germany, which collectively accounted for one million tourists last year.
Recent data from Stats NZ revealed that travel export receipts for the year ending June 30 totaled NZ$14.96 billion, representing a 5% decrease compared to pre-pandemic levels. Visitor numbers are currently approximately 80% of those before the onset of border restrictions.
Additionally, the New Zealand government has recently raised visitor visa fees and proposed increased charges on regional airports.
According to Billie Moore, the chief executive of NZ Airports, this combined increase represents “a triple-whammy for our sector, which is striving to support New Zealand’s economic recovery.”
Reuters and Australian Associated Press contributed to this report.
