The International Visitor Levy, a tax on tourists visiting New Zealand, will nearly triple.
It’s a move the Tourism Industry Association says will hamper tourism, leading to 48,000 fewer arrivals each year.
Tourism Minister Matt Doocey announced plans to almost triple the levy, increasing it from $NZD35 to $NZD100 ($92) per visitor.
Visitors from countries other than Australia and most Pacific Islands are required to pay the tax when visiting New Zealand.
Rebecca Ingram, the Tourism Industry Association chief executive, said the increased fee would scare off tourists – costing business. She estimated a reduction of 48,000 visitors equated to $273 million in spending.
Ingram said the association would have supported an increase of the levy from $35 to $50.
For families travelling, she said a $100 per person fee would be a major factor in considering whether to visit New Zealand. For a five-person group, it’s a $500 entry fee.
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Revenue from the levy is used to fund infrastructure and conservation projects which support tourism.
Conservation Minister Tama Potaka said the $100 per person fee was similar to levies in Australia and the UK.
“Taxpayers already contribute close to $884 million a year directly on tourism and conservation, including tourism promotion, natural heritage and recreation,” he said.
“This money funds Tourism New Zealand, protects biodiversity within the Department of Conservation estate and provides quality experiences at the likes of Milford Sound.”
The fee would increase from October 1.
This story has been reproduced with permission from Stuff.co.nz.
