The government – which announced a $NZ13.4 billion budget deficit in May – expects to raise up to an extra $NZ173 million each year.
Tourists to New Zealand will be slugged a $NZ100 fee to visit, in a move industry groups say cements the nation “as one of the most expensive countries in the world for a holiday”.
“Increasing the IVL means we can continue to grow international tourism to support economic growth,” Tourism Minister Matt Doocey said. The government is also increasing fees for visitor visas, which the NZ Airports Association said would mean visitors pay between $NZ495 and $NZ625 just to enter. Tourism Industry Association Aotearoa, the peak body, said the higher fees would discourage visitors, especially as the sector, once New Zealand’s biggest export earner, was still struggling to recover from strict border closures implemented during the COVID-19 pandemic.
The top markets that will be affected by the IVL include the USA, China, UK, India, South Korea and Germany, which together contributed one million tourists last year.
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