Tourism Sector Faces Challenges with Increased Visitor Fees
Potential Drop in Visitors and Revenue Loss
New Zealand-Tourism Sector Faces Challenges with Increased Visitor Fees. Starting October 1, foreign visitors to New Zealand will see a substantial increase in the International Visitor Conservation and Tourism Levy (IVL), which will rise from NZ$35 to NZ$100.
Tourism and Hospitality Minister Matt Doocey explained that the NZ$100 IVL is expected to represent less than three percent of an international traveler’s total spending in New Zealand. He believes that this fee increase will have minimal effect on visitor numbers.
Before the COVID-19 pandemic, tourism was the top export sector in New Zealand, even surpassing dairy exports. The industry has faced difficulties in its recovery, including limited airline capacity and delays in attracting travelers back from the crucial Chinese market.
Economic Strain Drives Record Emigration from New Zealand
Despite these challenges, tourism remains a significant economic contributor, generating over NZ$13 billion (around $8 billion) each year and drawing approximately 3.2 million international visitors in the year ending June.
The Tourism Industry Aotearoa (TIA) has noted that recent increases in the International Visitor Conservation and Tourism Levy (IVL) and a 60 percent rise in visitor visa fees could push the overall cost of visiting New Zealand to as much as NZ$500 (about $310) per person. This is more than double the cost of a trip to Canada and nearly 70 percent higher than visiting Australia.
Rebecca Ingram, CEO of Tourism Industry Aotearoa (TIA), cautioned that increasing the International Visitor Conservation and Tourism Levy (IVL) to NZ$100 could harm the tourism sector. She predicted this change might lead to a drop of 48,000 visitors and a NZ$273 million reduction in spending by tourists.
Furthermore, the International Air Transport Association (IATA) voiced its discontent, describing the fee hike as a double blow to the industry.
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