Foreign visitors to New Zealand will see a significant increase in the International Visitor Conservation and Tourism Levy (IVL), which is set to rise from NZ$35 to NZ$100 starting October 1. The New Zealand government has confirmed that travelers with Australian and New Zealand passports will be exempt from this fee.
Tourism and Hospitality Minister Matt Doocey stated that the new NZ$100 IVL would typically represent less than three percent of an international traveler’s overall spending in New Zealand, and he believes this increase is unlikely to affect visitor numbers.
Before the COVID-19 pandemic, tourism was New Zealand’s top export sector, surpassing dairy. However, the industry has faced challenges in its recovery, such as limited airline capacity and delays in the return of travelers from key markets like China.
Despite these obstacles, tourism remains a crucial part of New Zealand’s economy, generating over NZ$13 billion (about $8 billion) annually and attracting around 3.2 million international visitors in the year ending in June.
However, the Tourism Industry Aotearoa (TIA) noted that the increase in the IVL, combined with a recent 60 percent rise in visitor visa fees, could raise the overall cost of visiting New Zealand to as much as NZ$500 (approximately $310) per person. This would make it more than double the cost of visiting Canada and about two-thirds more than a trip to Australia.
TIA CEO Rebecca Ingram cautioned that raising the IVL to NZ$100 could harm the tourism sector, potentially leading to a loss of 48,000 visitors and a reduction in visitor spending of NZ$273 million.
The International Air Transport Association (IATA) also criticized the fee hike, describing it as a double blow to the industry.
