New Zealand is fearing a major decline in tourism after its government tripled the tourism levy. The government claims this move will improve public service and the general hospitality experience for tourists.
From October 1, international tourists visiting New Zealand will have to pay NZ$100 (roughly $61.9) in conversation and tourism charges compared to NZ$35 ($21.67) that were charged previously.
According to New Zealand’s government, this rise in fees will improve the public services and tourism experience of visitors to the country.
However, critics, including New Zealand’s Tourism Industry Association (TIA), are skeptical of the government’s claims. They believe the country is still struggling to regain its status as a top tourist destination to pre-COVID levels.
During the coronavirus pandemic, New Zealand’s tourism sector came to its knees as the country announced the closing of its borders. This resulted in a 98.6% decline in international tourism, and one-third of people employed in the tourism sector lost their jobs.
Critics suggest that higher levies can once again be detrimental to the growth of the tourism sector. Rebecca Ingram, the CEO of TIA, noted that New Zealand’s tourism industry has already lost its competitiveness globally, and these levies will further reduce the country’s appeal as a major tourist destination.
Latest data shows that New Zealand’s travel exports for the financial year ending June 30 reached NZ$14.96 billion, which is still 5% less than the pre-pandemic levels. However, the country is still making more money per tourist as the number of tourists is still at 80% compared to pre-COVID times.
Apart from the tourism levy, the government has also increased the visit visa fee recently and is planning to increase the airport charges, further increasing worries for the tourism economy. NZ Airports Association’s Chief executive Billie Moore called these plans a “triple-whammy” for the tourism sector.
Almost 3.2 million tourists visited New Zealand last year, including 1.3 million Australians, many of whom find it a perfect destination for a weekend getaway. Tourists from America, India, China, South Korea, and the United Kingdom also visit New Zealand in great numbers.
The rising tourism has reportedly taken a toll on New Zealand’s infrastructure, with data suggesting that tourists are contributing to rising carbon emissions, displaced wildlife, strained natural resources, and a rapid demand for water and electricity.
Previously, New Zealand introduced the NZ$35 tourism levy in 2019 to counter the mass influx of tourists. Still, that fee was not enough to make a sustainable infrastructure for many tourists.
Meanwhile, the government still believes that the new fees are reasonable to deter tourists from visiting the island and hopes that tourists from across the globe will continue to fly to the country.
