Travelling to New Zealand to get more expensive: Fees now nearly 3 times more to support tourism economy

New Zealand plans to raise its International Visitor Conservation and Tourism Levy on October 1 to address tourism-related costs. 

Sounak Mukhopadhyay
Published4 Sep 2024, 01:12 PM IST
Travelling to New Zealand to get more expensive: Fees now nearly 3 times more to support tourism economy
Travelling to New Zealand to get more expensive: Fees now nearly 3 times more to support tourism economy(Pixabay)

Starting October 1, New Zealand is set to raise its fee for international tourists nearly thrice. The popular tourist attraction is increasing its International Visitor Conservation and Tourism Levy (IVL) from 1,800 (NZ$35) to 5,178 (NZ$100).

This fee hike aims to cover the costs that tourism imposes on local communities, such as the strain on infrastructure and the upkeep of natural sites. Matt Doocey, the country's Minister for Hospitality and Tourism, explained that the additional funds would help manage these impacts.

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“The Government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years. International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over NZ$11 billion ( 5,180 crore) in the year ending March 2024,” Doocey said.

The IVL was introduced in 2019 to ensure that international tourists contribute to the expenses typically covered by New Zealand taxpayers.

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A consultation by the Ministry of Business Innovation and Employment (MBIE) revealed that 93% of participants favoured increasing the IVL. The additional charge would reasonably help offset tourism costs, according to an official statement.

New Zealand expected to remain a popular destination

The new rate for the IVL is still “competitive with countries like Australia and the UK”, as per the statement. New Zealand will remain a popular destination for travellers worldwide, the Department of Conservation hopes.

The NZ$100 IVL represents a small portion of the average tourist's total spending in New Zealand, likely having minimal impact on overall visitor numbers, the statement added.

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“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 visitor experiences on public conservation land,” Doocey said.

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First Published:4 Sep 2024, 01:12 PM IST
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