New Zealand hikes tourist tax prompting warning

The South Pacific nation is famed for its natural beauty - a major drawcard for visitors

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".

The nation is famed for its Māori culture and dramatic scenery, including glaciers, mountains, volcanoes and lakes.

But its location in the South Pacific and associated long-distance air fares have often posed a barrier for visitors.

“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 and 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, with just under three million international visitors in 2023, roughly three-quarters of pre-pandemic levels.

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. Most visitors to New Zealand are from Australia, the United States, China and Fiji.

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.