New Zealand nearly triples levy on international tourists

FILE PHOTO: Reuters The Grand Princess cruise ship is docked in 2023 at Wellington Harbour, in Wellington, New Zealand.
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WELLINGTON (Reuters) — New Zealand will nearly triple entry fees for tourists, the government said on Tuesday, spurring criticism from the key tourism sector the higher levy will deter visitors.

The government said in a statement it would increase the international visitor and conservation and tourism fees starting on Oct. 1 to NZ$100 ($62.20) from NZ$35 to “ensure visitors contribute to public services and high-quality experiences while visiting New Zealand.”

Like many popular global tourism spots, New Zealand has struggled with the impact of tourists on the natural environment, with infrastructure stretched by the large numbers.

The $35 fee was introduced in July 2019, but this was not sufficient to cover the costs associated with so many visitors.

The government said the fee was competitive and it was confident New Zealand would continue to be seen as an attractive visitor destination.

However, the country’s Tourism Industry Association believes the higher fees will discourage visitors, especially as the sector, once New Zealand’s biggest export earner, is still struggling to recover from strict border closures implemented during the COVID-19 pandemic.

“New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness,” said Rebecca Ingram, the association’s chief executive.