New Zealand Boosts Tourist Tax by 200% to Fund Economy and Conservation
New Zealand is set to significantly increase its International Visitor Conservation and Tourism Levy (IVL) starting October 1st, a move that has sparked concerns about its impact on tourist numbers. The levy will rise from NZ$35 (approximately ₹1,825) to NZ$100 (approximately ₹5,214), nearly tripling the cost for international visitors.
The New Zealand government has defended this substantial hike, emphasizing its necessity for supporting economic growth and ensuring that tourists contribute fairly to public services and the quality of their experiences in the country. This increase is part of a broader strategy aimed at mitigating tourism’s environmental impact while boosting the local economy.
Tourism and Hospitality Minister Matt Doocey and Conservation Minister Tama Potaka explained that the new levy will help cover the costs associated with tourism, including infrastructure strain and conservation maintenance. “The IVL will be increased to NZ$100 to ensure visitors contribute to public services and high-quality experiences while in New Zealand,” the ministers stated.
Minister Doocey highlighted that international tourism is vital for the New Zealand economy, with international visitors spending over NZ$11 billion in the year ending March 2024. However, the influx also places additional pressure on regional infrastructure and conservation areas, necessitating the increased levy.
Public consultations conducted by the Ministry of Business Innovation and Employment (MBIE) revealed that 93% of respondents supported the levy increase, citing it as a fair way to address tourism-related costs. The government believes that the new IVL remains competitive compared to similar levies in countries like Australia and the UK, and expects New Zealand to remain an attractive destination for international tourists.
The increased IVL is expected to represent less than 3% of the total expenditure for most international visitors, suggesting it is unlikely to significantly impact visitor numbers. The funds will be used to support high-value conservation projects and enhance visitor experiences at popular sites like national parks.
“Raising the IVL will enable us to continue growing international tourism while ensuring that visitors contribute to the preservation of our natural heritage and public conservation lands,” said Minister Doocey.
Minister Potaka added that New Zealand taxpayers currently contribute nearly NZ$884 million annually to tourism and conservation efforts, which funds tourism promotion, natural heritage protection, and maintenance of iconic locations such as Milford Sound, Aoraki/Mt Cook, and the Tongariro Alpine Crossing.
