New Zealand is set to nearly triple its levy on foreign tourists, increasing it from NZ$35 to NZ$100 (US$62) starting October 1, 2024. This hike, alongside a substantial rise in visa fees, has raised concerns that it could slow the recovery of the tourism industry, which is still struggling to reach pre-pandemic levels. The International Air Transport Association (IATA) and Tourism Industry Aotearoa warned that the higher costs could make New Zealand less attractive to international visitors, further delaying tourism recovery, which is currently lagging behind global trends.
Despite these concerns, Tourism Minister Matt Doocey defended the increase, noting that the funds will support infrastructure and environmental conservation efforts. He argued that the new levy is competitive compared to other countries like Australia and the UK and that it represents only a small portion of tourists’ overall spending. However, critics, including IATA and industry leaders, suggested that New Zealand should focus on improving its competitiveness rather than raising fees.
Tourism was New Zealand’s largest export industry before the Covid-19 pandemic, but challenges such as reduced airline capacity and a slow return of Chinese tourists have hindered its recovery. Industry leaders fear that these new costs could further weaken the sector, which currently sits at 80% of pre-pandemic levels.
