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Starting October 1st, New Zealand will implement a significant hike in its International Visitor Conservation and Tourism Levy (IVL), raising the charge from NZ$35 to NZ$100. This substantial increase, nearly tripling the levy, has sparked discussions about its potential impact on tourism.
The New Zealand government has justified the rise as a necessary measure to ensure that tourists contribute fairly to public services and the quality of their experiences in the country. The increased levy is part of a broader strategy aimed at mitigating the environmental impact of tourism while bolstering the local economy.
Minister for Tourism and Hospitality, Matt Doocey, and Minister of Conservation, Tama Potaka, stated, “The IVL will be raised to NZ$100 to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand.” They emphasized that this move aligns with the government’s goal of supporting the tourism sector’s growth and doubling exports within the next decade.
International tourism is a vital component of New Zealand’s economy, with visitors spending over NZ$11 billion in the year ending March 2024. However, the influx of tourists has also placed additional strain on regional infrastructure and increased maintenance costs for conservation areas.
The IVL, introduced in 2019, was designed to ensure that international visitors share the financial burden of these costs. According to public consultations conducted by the Ministry of Business Innovation and Employment (MBIE), 93% of respondents supported the increase, viewing it as a reasonable measure to address tourism-related expenses.
Despite the rise, the government maintains that the new IVL will remain competitive compared to similar charges in countries like Australia and the UK. Officials believe that the increase, representing less than 3% of an average visitor’s total spending, is unlikely to significantly affect tourist numbers.
The additional revenue will be used to fund various conservation and tourism projects, including supporting biodiversity in national parks and enhancing visitor experiences on public conservation land. The government highlighted that taxpayers currently contribute approximately NZ$884 million annually towards tourism and conservation efforts, funding everything from promotional activities to natural heritage protection.
By implementing this increased levy, New Zealand aims to balance the benefits of international tourism with the need for sustainable conservation practices and infrastructure maintenance, ensuring that the country’s natural and cultural resources continue to thrive for future generations.
Sources By Agencies
