The cost of the New Zealand tourist levy will increase from NZ$35 to NZ$100 on 1 October 2024. This increase will therefore impact the price of the NZeTA for visa-exempt travellers.
VisasNews’ travel experts advise tourists planning to visit New Zealand in the coming months to quickly apply for their NZeTA electronic travel authorization as its price will more than double…
Indeed, from October 1, 2024, New Zealand will increase the cost of its tourism tax, known as the International Visitor Conservation and Tourism Levy (IVL), and included in the NZeTA fee, from 35 NZ$ to 100 NZ$.
“The International Visitor Conservation and Tourism Levy (IVL) will be raised to $100 to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand”, Tourism and Hospitality Minister Matt Doocey and Conservation Minister Tama Potaka announced in a statement.
This significant increase aims to better fund the preservation of the country’s natural environment as well as tourism infrastructure, in response to the continuing growth in the number of international visitors.
“The IVL was introduced in 2019 as a mechanism to ensure international visitors were contributing directly to these costs, the vast majority of which are paid for by New Zealand taxpayers and ratepayers”, explains Matt Doocey.
According to the Tourism Minister, “a public consultation by the Ministry of Business Innovation and Employment (MBIE) found 93 per cent of submitters supported raising the IVL, with the main rationale being an increase would be reasonable to help cover the costs of tourism”.
The cost of the tourist levy “remains competitive with countries like Australia and the UK”
“The new IVL remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world”, said Matt Doocey.
The Minister adds that “a $100 IVL would generally make up less than 3 per cent of the total spending for an international visitor while in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers”.
“Increasing the IVL means we can continue to grow international tourism to support economic growth while ensuring international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks and other highly visited areas and improving visitor experiences on public conservation land”, said Matt Doocey.
New Zealand Electronic Travel Authority (NZeTA) price increased
The increase of the IVL fee will directly impact the total cost of the New Zealand Electronic Travel Authority (NZeTA), required for visa-exempt travellers entering New Zealand, as the cost of this contribution to local tourism is included in this online process.
From 1 October 2024, a traveller using the official mobile app (App Store | Google Play Store) to apply for a New Zealand Electronic Travel Authority will pay NZ$117 (approximately US$73), up from NZ$52 currently; while an online application will cost NZ$123 (almost US$76), up from NZ$58 currently.
Nationals of the following countries are exempt from New Zealand entry visa requirements, but must apply for an NZeTA, and therefore pay the IVL tourist levy, before traveling to the country:
- Andorra, Argentina, Austria, Bahrain, Belgium, Brazil, Brunei, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Malaysia, Malta, Mauritius, Mexico, Monaco, Netherlands, Norway, Oman, Poland, Portugal, Qatar, Romania, San Marino, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates, United Kingdom, United States, Uruguay and the Vatican.
The following are exempt from paying the IVL levy:
- passengers transiting through Auckland Airport;
- New Zealand, Australian or many Pacific Island passport holders;
- New Zealand or Australian resident visa holders;
- Business visitor visa or APEC Business Travel Card holders.
IATA disappointed by New Zealand’s tourism levy increase…
The move has sparked mixed reactions among tourism industry players. Some operators fear that the increase in the IVL tax could deter potential visitors, especially those travelling on a budget.
The International Air Transport Association (IATA) today expressed its “disappointment” following the New Zealand government’s decision to increase the IVL tax rate…
“It has been a double whammy for the New Zealand travel and tourism sector, starting with New Zealand Immigration announcing steep increases in visa fees, and now the increase in the IVL. These changes make travel to New Zealand more expensive and less attractive and could further delay the recovery in visitor numbers to beyond 2026”, said Dr. Xie Xingquan, IATA’s Regional Vice President for North Asia and Asia-Pacific (ad interim).
Citing the example of Thailand, which recently decided not to introduce its own tourist tax, Xie Xingquan explains that “the travel and tourism sector is an important contributor to the New Zealand economy. The government’s analysis indicated that more than three times of economic activity will be removed from the country for every dollar generated from additional IVL revenue. Instead of stifling its development, the government should be looking at ways to improve the country’s competitiveness as a destination compared to other markets”.
During the IVL public consultation process, IATA submitted a proposal urging that the tax not be increased. “Unfortunately, the government announced the increased levy and its application in the 2024 budget while the consultation process was still ongoing, casting doubt on the process’ effectiveness”, said Dr. Xie Xingquan.
