New Zealand raises entry fee – here’s how much more visitors will have to pay

Tourists visiting New Zealand will have to pay an entrance fee of NZ$100, a move that industry groups say will make the country “one of the most expensive places in the world to go on holiday”.

The International Visitors Levy (IVL) will increase from $NZ35 ($A32) to $NZ100 ($A92) from October under changes announced on Tuesday.

However, Australians and travellers from most Pacific countries are exempt from the IVL.

The IVL was introduced in 2019 and its proceeds are expected to be reinvested in tourism infrastructure and conservation projects to improve popular tourist destinations and thus increase tourist numbers.

“By increasing the IVL we can continue to expand international tourism and therefore support economic growth,” said Tourism Minister Matt Doocey.

‘(It ensures that) international visitors contribute to valuable natural areas and projects, such as supporting biodiversity in national parks.’

The move comes as the government attempts to promote New Zealand as a destination for higher-spending tourists, rather than backpackers or the van-hopping “freedom campers” loathed by locals.

Freedom campers spend very little money on local businesses, but they do create extra pressure around tourist attractions.

Tourists visiting New Zealand will have to pay an entrance fee of NZ$100, in a move that industry groups say will make the country “one of the most expensive countries in the world for a holiday” (pictured: travellers at Auckland International Airport)

For months, it had been announced that the levy would increase. The government budget included an increase from $35 to $70.

After consultation, the government, which announced a budget deficit of NZ$13.4 billion ($A12.3 billion) in May, has agreed to a larger increase, which is expected to yield an additional NZ$127-173 million ($A117-159 million) a year for the exchequer.

The government is also significantly increasing the cost of tourist visas. According to the New Zealand Airports Association (NZAA), foreigners will now have to pay $495-625 NZD ($454-573 NZD) to enter the country, when the cost of the visa, IVL, immigration fee and other fees are added together.

The cost of a visitor visa rose by 61 percent to NZ$341 ($A313).

According to Billie Moore, director of the NZAA, the rising costs for visitors are a ‘triple blow’ to the tourism sector.

“The government’s own modelling just two years ago showed that a NZ$100 increase at the border could reduce visitor demand by as much as 2.61 per cent, or 101,000 visitors compared to pre-pandemic levels,” he said.

Umbrella organisation Tourism Industry Aotearoa last month expressed disappointment at the growth in the number of visitor visas and working holiday visas, which rose 59 per cent to NZ$670 (A615).

Australians and travellers from most Pacific countries are exempt from the IVL (pictured: Auckland)

“We are particularly concerned about the cumulative effect of these costs, which we believe will have a material impact on visitor numbers, an important workforce and the economic contributions they generate,” said Rebecca Ingram, CEO of TIA.

Last year, more than 3.2 million tourists visited New Zealand, including 1.3 million Australians.

The main markets affected by the IVL are the United States, China, the United Kingdom, India, South Korea and Germany. Together, these countries attracted one million tourists last year.

Mr Doocey said he hoped the rate increase would not have a negative impact on tourist numbers as it would ‘generally account for less than three per cent of the total expenditure of an international visitor’.

“The new IVL can compete with countries like Australia and the UK. We are confident that New Zealand will be seen as an attractive holiday destination by many people around the world,” he said.

The Australian passenger duty, which has no nationality-based exemptions, was increased from $A60 to $A70 in July.