HOLIDAYMAKERS have been warned of a looming tourist tax that will see the existing levy raised by 65 percent with the hope of deterring visitors.
The New Zealand government announced in a statement on Tuesday that it has plans to hike up international visitor and conservation fees to force visitors to “contribute to public services”.
Frequent flyers will need to remember to set aside their savings to ensure they’re not left short for the nation’s entry fee.
Currently, those landing into one of the five international airports across the Māori and English speaking islands contribute NZ$35 towards the “high-quality experiences while visiting”.
However, the government’s announcement confirms that prices will see a 65 percent elevation.
From October 1, tourists will face a NZ$100 tourism fee.
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Those boarding from Australia and most Pacific nations will not have to pay the levy which is equivalent to just under £50.
Despite hiking up the cost of the fee, the Tourism Industry Association has confidence that the number of those heading to traverse, bungee or enjoy the incredible scenery on offer will remain consistent.
However, the association’s chief executive, Rebecca Ingram, said: “New Zealand’s tourism recovery [from the Covid-19 pandemic] is falling behind the rest of the world, and this will further dent our global competitiveness.”
The government has backed the decision by suggesting the fee was competitive and would not put tourists off the destination.
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Tourism minister, Matt Doocey, explained that the levy was necessary to ensure “international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks.”
Last year, more than 3.2 million tourists headed to the nation known for offering thrill-seekers ample dare-devil experiences alongside wineries, Hobbiton set tours, active volcanoes and even the Fergburger – if you know, you know.
However, data from Stats NZ last week revealed that visitor numbers are only around 80% of the level before the border closed for the pandemic.
NZ Airports chief executive, Billie Moore, said: “It is a triple-whammy for our sector, which is trying to work hard for New Zealand’s economic recovery.”
What is tourism tax?
- A ‘tourist tax’ – also known as a ‘transient visitor levy’ – is a fee applied to short-stay accommodation.
- They are often imposed in cities with strong tourist economies, in countries such as Canada, Spain, Germany, Belgium and France.
- A tourist tax normally takes the form of a charge per occupied bed or room per night, within short-term accommodation providers.
- The charge can be set at a flat rate or a series of flat rates (for example, €2 per bed per night), or it can be set as a percentage of the price of the bed or room.
- Tourist taxes are sometimes set at different rates for different times of the year.
- Some cities exempt, or give discounts for beds occupied by children or those travelling for medical reasons.
- Others impose different rates on campsites, bed and breakfasts, non-serviced accommodation, or hotels with different star ratings.
Source: The House of Commons Library
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