New Zealand to impose hefty tax hike on international visitors

New Zealand to triple tourist taxes from October 1 to fund tourism infrastructure

New Zealand to triple tourist taxes from October 1 to fund tourism infrastructure
New Zealand to triple tourist taxes from October 1 to fund tourism infrastructure

New Zealand government has decided to increase taxes for international tourists to improve visitors’ experiences.

According to Independent, the government is planning to triple the taxes for international visitors. The increased taxes will not only boost the taxes but be used to support conservation.

Tourism and Hospitality Minister Matt Doocey said, “The government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years.”

The International Visitor Conservation and Tourism Levy (IVL) will be increased from NZ$35 (about £16) to NZ$100 (about £47). New taxes will take effect on October 1.

Doocey noted, “International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over $11bn in the year ending March 2024.”

He continued, “But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate.”

The tourism minister asserted that a $100 IVL will make up less than 3% of the total spending of international visitors.

Doocey stated that the government consulted with the citizens about their decision, and 93% of the citizens supported the idea of increasing taxes.