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New Zealand Raises Visitor Levy: What Travelers Need to Know

by Alice

Travelers planning to visit New Zealand will face higher costs starting October 1, as the country increases its International Visitor Conservation and Tourism Levy (IVL) from NZ$35 ($22) to NZ$100 ($62). This fee adjustment comes amid rising concerns over the impact of tourism on local infrastructure and conservation efforts.

Increased Levy to Support Conservation and Infrastructure

Matt Doocey, New Zealand’s Minister for Hospitality and Tourism, announced the increase in a recent statement, highlighting the financial pressures that international tourism places on local communities. “International tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate,” Doocey explained.

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The IVL, introduced in 2019, is designed to fund environmental protection initiatives across New Zealand. According to Doocey, international tourists spent over $11 billion in the country from March 2023 to March 2024, underscoring the significant economic impact of tourism.

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Industry Reaction to the Price Hike

The decision to raise the IVL has been met with criticism from Tourism Industry Aotearoa (TIA), a coalition of travel industry professionals. The group argues that the increased levy could hinder New Zealand’s tourism recovery and damage its global competitiveness. TIA expressed concerns that tourists might opt for destinations like Canada or the UK, where travel costs are lower and entry fees are less prohibitive.

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Additional Costs for Tourist Visas

In addition to the increased IVL, tourists will also face higher visa fees starting October 1. The cost of tourist visas will rise from $131 to $211. Citizens from 60 countries, including the United States, Canada, Singapore, Japan, and Mexico, who are eligible for visa waivers will still need to obtain an e-visa and pay the new IVL.

With the introduction of these new rules, the government anticipates longer processing times for visas. Immigration New Zealand advises travelers planning to visit during the Christmas holiday period to apply by October 15 and those intending to come for Lunar New Year to apply by November 15.

The Growing Trend of Tourist Taxes

New Zealand’s increase in visitor fees reflects a broader trend of “tourist taxes” around the globe. From Venice to Bhutan, about 60 destinations impose various fees on travelers to manage the effects of overtourism, such as congestion and environmental damage. Despite these costs, a study from Bangor University in Wales suggests that such fees have not significantly deterred tourists from visiting these destinations.

Cities like Edinburgh, Scotland, and Zermatt, Switzerland, are also considering implementing similar fees in the future. The debate over tourist taxes continues, with many destinations viewing them as a necessary measure to sustain their infrastructure and natural resources.

Conclusion

As New Zealand raises its IVL and visa fees, travelers should plan accordingly and be prepared for higher costs when visiting the country. The increase reflects broader global trends in managing tourism’s impact, and while it may influence travel decisions, it also highlights the ongoing efforts to balance tourism with environmental and infrastructural sustainability.

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