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What’s the story
The New Zealand government has announced plans to nearly triple the entry fees for international tourists.
In a statement released on Tuesday, the government revealed that starting from October 1, the international visitor, conservation, and tourism fees will be increased to NZ$100 (₹5,000 approx.) from NZ$35 (₹1,870 approx.).
The increase is intended to “ensure visitors contribute to public services and high-quality experiences while visiting New Zealand.”
Exemptions and criticisms
Exemptions and criticisms surrounding the fee hike
The new levy will not apply to Australians and travelers from most Pacific nations, who are exempt.
However, the decision has sparked criticism from the key tourism sector, which fears that the higher fees may deter potential visitors.
Despite these concerns, the government maintains that the fee is competitive and believes New Zealand will continue to be seen as an attractive visitor destination.
Tourism Minister defends fee hike amid industry concerns
Tourism Minister Matt Doocey supported the fee increase, explaining that the funds help international visitors contribute to conservation efforts, including biodiversity protection in national parks.
However, the Tourism Industry Association of New Zealand expressed concerns that the higher fees could discourage visitors.
The association’s chief executive, Rebecca Ingram, warned that this move could further impact New Zealand’s tourism recovery and global competitiveness.
Impact of fee hike on major tourist markets
The increased tourism levy is expected to affect several major markets, including the US, India, China, UK, South Korea and Germany.
These countries collectively contributed one million tourists to New Zealand last year.
The country welcomed over 3.2 million tourists in total last year, with Australians making up 1.3 million of these visitors.
The fee hike comes as the tourism sector continues to grapple with recovery from strict border closures during the Covid-19 pandemic.
Tourism sector struggles amid fee hike and pandemic
Data from Stats NZ revealed that travel export receipts for the year ending June 30 were NZ$14.96 billion (₹798 billion), a 5% decrease from pre-pandemic levels.
Visitor numbers are at about 80% of pre-border closure levels.
Additionally, the New Zealand government has raised visitor visa costs and proposed higher charges for regional airports.
Billie Moore, NZ Airports chief executive, indicated that these measures present a significant challenge for the sector, which is striving to support New Zealand’s economic recovery.
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