A price hike has been foreshadowed for months, and was modelled in the government’s budget to increase from $NZ35 to $NZ70.
After consultation, the government – which announced a $NZ13.4 billion budget deficit in May – decided for the heftier hike, expected to net coffers up to an extra $NZ173 million each year.
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The government is also increasing fees for visitor visas, which the NZ Airports Association said would mean visitors pay between $NZ495 and $NZ625 just to enter.
That figure combines the visitor visa fee, which went up 61 per cent to be $NZ341, the immigration levy, IVL, biosecurity, customs and aviation charges.
Chief executive Billie Moore said it was a “triple-whammy” for the sector.
“The government’s own modelling from just two years ago showed that a lift of $NZ100 at the border could reduce visitor demand by up to 2.61 per cent, or 101,000 visitors based on pre-pandemic levels,” he said.
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Tourism Industry Association Aotearoa, the peak body, said the higher fees would discourage visitors, especially as the sector, once New Zealand’s biggest export earner, was 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.
“We are particularly concerned about the cumulative effect of these fees, which we believe will have a material impact on visitor numbers, a vital workforce and the economic contributions they bring.”
More than 3.2 million tourists visited New Zealand last year, including 1.3 million Australians.
Data from Stats NZ released earlier on Tuesday showed that travel export receipts for the year ended June 30 were at NZ$14.96 billion, down 5 per cent from prior to the pandemic. Visitor numbers, according to the bureau, are roughly 80 per cent of levels before the border closures.
The top markets that will be affected by the IVL include the USA, China, UK, India, South Korea and Germany, which together contributed one million tourists last year.
Doocey said he was hopeful the fee hike wouldn’t hurt tourist numbers given it “would generally make up less than three per cent of the total spending for an international visitor”.
“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,” he said.
Australia’s passenger movement charge, which has no nationality-based exemptions, was raised in July from $60 to $70.
AAP, Reuters
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