New Zealand’s government has announced a significant increase in entry fees for tourists, nearly tripling the current charge. Starting October 1st, the international visitor and conservation and tourism fees will rise to NZ$100 ($62.20) from the previous NZ$35. This move, aimed at ensuring visitors contribute to public services and environmental protection, has sparked criticism from the tourism sector, which is still grappling with the aftermath of COVID-19 border closures.
The government’s rationale for the fee hike centers around the strain placed on New Zealand’s infrastructure and environment by the influx of tourists. The initial NZ$35 fee, introduced in July 2019, was deemed insufficient to cover the costs associated with managing the large visitor numbers. Despite acknowledging that the fee increase could potentially deter some visitors, the government maintains that it remains competitive and believes New Zealand will continue to attract tourists.
However, the Tourism Industry Association expresses concern about the impact of the higher fees. They argue that the increased costs, coupled with the sector’s ongoing recovery from the pandemic, will further hinder New Zealand’s global competitiveness. Data from Stats NZ reveals that travel export receipts for the year ending June 30 were NZ$14.96 billion, a 5% decrease compared to pre-pandemic levels. While visitor numbers have rebounded to roughly 80% of pre-closure levels, the association fears that the additional financial burden could discourage potential travelers.
The tourism industry’s anxieties are amplified by recent cost increases in other areas. The New Zealand government has also raised visitor visa fees and proposed raising charges at regional airports. The Tourism Industry Association considers this a “triple-whammy” for a sector already striving for economic recovery, highlighting the potential for negative ramifications on the country’s tourism industry.
