New Zealand Increases Tourist Entry Fee Amidst Recovery Challenges

New Zealand is set to significantly raise the entry fee for foreign tourists, sparking concerns that the move may deter travellers. 

Starting from October 1, the International Visitor Conservation and Tourism Levy will increase from NZ$35 (£16.52) to NZ$100 (£47.20), nearly tripling in cost. The government explained that the change is aimed at supporting economic growth and ensuring that tourists contribute to public services and enjoy high-quality experiences during their stay. 

However, Tourism Industry Aotearoa, an independent tourism organisation, believes that the higher fee could act as a deterrent, making New Zealand a more costly destination for visitors.

New Zealand Faces New Tourism Tax Hurdles

Renowned for its Māori heritage and stunning landscapes that feature glaciers, mountains, volcanoes, and lakes, New Zealand’s remote location in the South Pacific, coupled with high long-distance flight costs, has often been a challenge for attracting tourists. 

Rebecca Ingram, CEO of the country’s tourism association, expressed concerns that New Zealand’s tourism recovery is lagging behind global trends, and the increased levy may weaken its competitive edge. 

The levy was first introduced in 2019 as the country sought to manage the strain that large numbers of visitors were placing on its infrastructure, environment, and local communities.

Tourism Minister Defends Entry Fee Hike Amid Post-Pandemic Recovery

New Zealand closed its borders for two and a half years during the coronavirus pandemic, only reopening to international visitors in August 2022. Since then, the country has faced challenges in regaining pre-pandemic tourist numbers, with just under three million visitors recorded in 2023—about 75% of the levels seen before the pandemic. 

Tourism Minister Matt Doocey argued that the increase in the entry fee would have minimal impact on visitor numbers, as NZ$100 represents less than 3% of the average tourist’s spending in the country. He also emphasised that New Zealand remains competitively priced compared to destinations like Australia and the UK, and that it continues to appeal to travellers globally. 

Global Trend: New Zealand Joins Other Nations in Raising Tourist Taxes

Visitors from Australia and the Pacific Islands are exempt from the levy, and most tourists to New Zealand come from Australia, the U.S., China, and Fiji. The increase in the levy will coincide with a rise in visa fees for some visitors, both taking effect from October 1.

New Zealand is not alone in implementing taxes for visitors. Countries such as Indonesia, Spain, France, Austria, Croatia, Costa Rica, Iceland, and Italy also impose similar charges on tourists. Typically, these fees are integrated into accommodation, visa, or airfare expenses. 

In a recent example, Venice introduced a trial in April, requiring day visitors to pay a €5 fee on peak days in an effort to address the challenges of over-tourism.