September 3rd 2024.
The news is out - the International Visitor Levy, which is a tax imposed on tourists who travel to New Zealand, is set to almost triple. This decision has been met with concern from the Tourism Industry Association, who believes that it will negatively impact the tourism industry and result in a significant decrease of 48,000 visitors per year.
According to Tourism Minister Matt Doocey, the plan is to increase the levy from $35 to $100 for each visitor. This tax applies to all visitors, except those from Australia and some Pacific Islands. Rebecca Ingram, the chief executive of the Tourism Industry Association, has expressed worry that this steep increase will discourage tourists from choosing New Zealand as their destination and ultimately hurt businesses. She estimates that the loss of 48,000 visitors would mean a loss of $273 million in spending.
While the association would have supported a more moderate increase of the levy from $35 to $50, the proposed $100 fee is seen as excessive, especially for families. For a group of five, this would mean a hefty $500 entry fee. This could potentially deter families from choosing New Zealand as their holiday destination.
On the other hand, the government has stated that the revenue from the levy goes towards funding infrastructure and conservation projects that support tourism. According to Conservation Minister Tama Potaka, the $100 fee is in line with similar levies in countries like Australia and the UK. He also pointed out that taxpayers already contribute a substantial amount of money towards tourism and conservation efforts, including funding for Tourism New Zealand and preserving natural heritage sites like Milford Sound.
The increased levy is set to take effect from October 1st. This story has been shared with permission from Stuff.co.nz.
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