New Zealand triples tourist entry fee

Setting foot in Aotearoa New Zealand has become even more expensive for tourists as the government increases tourist taxes.

According to the tourism minister, infrastructure maintenance and the cost of preserving the country’s vast protected natural areas are the reasons for the price increase.

The levy will be tripled to NZ$100 ($92 AUD) from October 1. However, the levy will not apply to citizens of New Zealand or Australia, or many Pacific Island states.

Tourist organizations fear that the increase will deter travelers.

But the Tourism Minister says a $100 levy would amount to about 3 percent of what the average international tourist spends in New Zealand, and an increased rate would be in line with Australia and the United Kingdom.

“By increasing the levy we can continue to expand international tourism, supporting economic growth, while ensuring international visitors contribute to valuable natural areas and projects,” Tourism Minister Matt Doocey said on Tuesday.

“Such as supporting biodiversity in national parks and other high-traffic areas and improving the visitor experience on publicly protected lands,” Mr Doocey said.

New Zealand’s Department of Conservation oversees approximately 30 percent of the country’s land. These areas are designated as protected areas under various names, including national parks, nature reserves, and conservation areas.

The new charge comes into effect on October 1 and will be NZ$100, which is equivalent to $92AUD (pictured Auckland Airport)

The government introduced the NZ$35 levy in 2019. When consulted on the increase, 93 percent of the more than 1,000 respondents said they were in favor of increasing the fee.

The current fee generates about NZ$80 million a year, while New Zealand taxpayers pay about NZ$884 million a year to tourism and conservation, according to Conservation Minister Tama Potaka.

Last financial year, the number of arrivals from Australia to New Zealand rose to 1.2 million.

Analysis by the New Zealand Department of Tourism found that Australians spend around $3 billion annually in Aotearoa.

About 39 percent of Australian visitors go on holiday and 42 percent visit friends and family.

More than half, 58 percent, fly direct to the South Island and more Australians land in Queenstown (43 percent) than Auckland (38 percent).

The chief executive of the New Zealand Airports Association said the increase “confirms New Zealand as one of the most expensive countries in the world for a holiday today”.

“Increasing the levy, increasing visa fees and proposing new charges at regional airports is a triple whammy for our industry, which is working hard to drive New Zealand’s economic recovery,” said Billie Moore, CEO of NZ Airports.

The New Zealand economy fell into recession as a result of the Covid-19 pandemic, but the Australian economy managed to avoid this.

The government is betting that the levy increase will not deter tourists from coming. Photo: Supplied

New Zealand’s recession technically ended in June this year. In addition to the pandemic that devastated the country’s key tourism sector, fuel and labour costs hampered its largest industry, agriculture.

The Reserve Bank of New Zealand raised interest rates to 5.5 percent, the highest level in 14 years, before finally cutting rates at its last meeting in August.