New Zealand's tourism tax will nearly triple in October

03.09.2024 - 20:17 / thepointsguy.com

Entering New Zealand is about to get more expensive. Starting next month, the country is set to nearly triple its tourism tax amid surging tourism, the government announced Tuesday.

Beginning Oct. 1, tourists entering New Zealand from most countries, including the U.S., will have to pay a hiked International Visitor Conservation and Tourism Levy of 100 New Zealand dollars (about $62). That's up from the current fee of NZ$35 (about $22).

The move has been somewhat expected for years; back in early 2022, TPG reported that New Zealand's tourism and hospitality minister had hinted at potential tourism tax hikes right as travelers began returning to the country in the wake of the relaxation of stringent COVID-19 pandemic travel restrictions.

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New Zealand introduced its tourism tax about five years ago as a way to offset the mounting pressure on infrastructure and natural resources posed by a surging number of tourists visiting the country from all over the world.

After a pandemic hiatus, travel to New Zealand has continued to spike in recent years.

In 2024, the total number of seats on commercial flights between the U.S. and New Zealand is up 7% since 2019, according to data from aviation analytics firm Cirium. Seats are up a whopping 61% versus a decade ago, in 2014.

That increase in seats has been sparked by new and more frequent flights to the country. In addition to more routes to Auckland, additional options to other parts of the country are now available, including to Christchurch on New Zealand's South Island via United Airlines.

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Raising the tourism tax to NZ$100 is meant "to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand," the country's minister for tourism and hospitality and minister for conservation said in a statement announcing the news Tuesday.

"The Government is serious about enabling the tourism sector to grow," Matt Doocey, the country's tourism and hospitality minister, said Tuesday. "But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs."

Not everyone is in favor of the hiked tourism tax, though.

An independent trade group for the country's tourism sector said it was "very disappointed" in a statement Tuesday.

The fee "is a barrier making New Zealand incredibly expensive to visit," said Rebecca Ingram, chief executive at Tourism Industry Aotearoa.

Travelers visiting New Zealand are asked to pay the International Visitor Conservation and Tourism Levy when applying