New Zealand Nearly Triples Tourism Tax For Foreign Visitors. Here's Why

Wellington: New Zealand is poised to nearly triple its International Visitor Conservation and Tourism Levy (IVL), with raising its fee from ₹1,800 (NZ$35) to ₹5,178 (NZ$100) for international tourists.

Aims to Manage the Impacts of Tourism

This increase aims to address the costs that tourism imposes on local communities, such as infrastructure strain and the maintenance of natural sites. Matt Doocey, the country’s Minister for Hospitality and Tourism, noted that the additional revenue will help manage these impacts effectively.

“The Government is committed to supporting the growth of the tourism sector as part of our broader objective to double exports within a decade. International tourism is a significant contributor to New Zealand's economy, with visitors spending over NZ$11 billion (₹5,180 crore) in the year ending March 2024,” said Doocey.

The IVL, introduced in 2019, was designed to ensure international tourists contribute to the costs typically borne by New Zealand taxpayers.

A consultation by the Ministry of Business Innovation and Employment (MBIE) found that 93% of participants supported increasing the IVL. According to an official statement, this additional charge will help offset tourism-related expenses.

New Rates Will Continue to Attract Global Travelers

The new IVL rate is still considered competitive compared to countries like Australia and the UK. The Department of Conservation believes New Zealand will continue to attract global travelers.  

The NZ$100 IVL is a small fraction of the average tourist’s total expenditure in New Zealand, and it is expected to have minimal impact on visitor numbers.

“Increasing the IVL allows us to support the growth of international tourism while ensuring that visitors contribute to the upkeep of high-value conservation areas and projects, such as enhancing biodiversity in national parks and improving visitor experiences on public conservation lands,” Doocey added.