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Elevate Magazine
September 3, 2024

NZ Introduces $100 Entry Fee for Tourists

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Starting from October, international visitors to New Zealand will face a significantly higher entry fee as the government triples the International Visitor Levy (IVL) from $35 to $100. This sharp increase, announced on 3 September 2024, has been introduced to address the growing pressures on New Zealand’s environment and tourism infrastructure, which have been exacerbated by the steady return of global travel following the COVID-19 pandemic. When traveling to New Zealand, visitors from countries other than Australia and the majority of the Pacific Islands must pay the levy.

The IVL, first introduced in 2019, was designed to fund projects that support conservation and tourism infrastructure across New Zealand. The revenue from this levy is used to protect natural landscapes, improve facilities for visitors, and ensure the sustainability of the country’s tourism sector.

With the tourism industry recovering from the pandemic, the government argues that the increased levy is necessary to ensure that New Zealand’s natural environment, a key attraction for tourists, is not compromised.

Prime Minister Chris Hipkins stated that the move is part of the government’s broader strategy to manage the impact of tourism on the country’s unique ecosystems and landscapes. “Tourism is vital to our economy, but it must be sustainable. We need to protect what makes New Zealand special,” he said. The increased levy, Hipkins emphasised, will help ensure that the costs associated with tourism are more evenly distributed, with visitors contributing more directly to the upkeep of the places they come to enjoy.

Tourism Minister Peeni Henare also highlighted that the levy aligns with the government’s commitment to sustainable tourism, saying, “This is about making sure tourism benefits all New Zealanders, not just in the short term, but for generations to come.” Henare added that the funds raised would continue to be directed towards initiatives that protect the environment and enhance the infrastructure that supports the tourism industry.

However, the significant hike in the levy has sparked debate, particularly within the tourism industry. Some industry representatives have expressed concerns that the higher cost could deter potential visitors, particularly from key markets such as Australia and China.

With the tourism sector still in recovery mode due to the COVID-19 pandemic, the fear is that this added financial burden could make New Zealand less competitive as a destination, especially in a global market where travellers have many choices.

Critics argue that the levy could disproportionately affect budget travellers, who may be more sensitive to price increases. This could lead to a decline in visitor numbers, particularly among younger tourists and backpackers, who traditionally spend more time in the country and contribute to local economies in different ways.

On the other hand, supporters of the increase believe it will attract a different type of tourist—one who is more environmentally conscious and willing to pay a premium to experience New Zealand’s natural beauty. They argue that the higher levy will help position New Zealand as a high-quality, sustainable tourism destination, which could, in turn, lead to longer stays and higher spending per visitor.

Kiwi businesses, particularly in tourism, retail, and hospitality, should prepare for changes in tourist behaviour due to the $100 International Visitor Levy starting from October.

While the levy aims to support a more sustainable tourism model, its success will hinge on balancing this cost with maintaining New Zealand’s appeal as a destination. Local businesses might face initial challenges, but the long-term goal is a more resilient sector, benefiting both the environment and the economy.