Tourists could be taxed to enter New Zealand under new proposal

Friday, 15 June 2018

The proposed levy would likely be implemented in the second half of 2019 following a legislative process.

Tourists arriving in New Zealand could be charged up to $35 to enter the country under a Government proposed international visitor levy.

On Friday, the Government will begin a consultation period, ending on July 15, to see if a tourist tax could ease the cost burden on communities and ratepayers for tourism-related infrastructure.

The proposed levy would impact international visitors entering New Zealand for 12 months or less, and would be at a rate between $25 to $35.

Minister for Tourism Kelvin Davis said a tourist tax is needed.

Not all visitors would be be charged, most notably Australian citizens and permanent residents and people from most Pacific Island Forum countries.

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The Government want a tourist levy to help ease the burden of tourism.

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Conservation Minister Eugenie Sage thinks tourists will be happy to help protect our special places.

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Minister of Tourism Kelvin Davis said: 'Rapid growth has impacted on the costs and availability of publicly-provided infrastructure. Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to carparks.'

The Government claims it would bring in $57-80 million in its first year, depending on the rate, which will be split between tourism infrastructure and conservation activity.

It is proposed the tax would be collected through visa fees and via the proposed Electronic Travel Authority process, also under consultation, for citizens of visa waiver countries.

The announcement follows closely behind a new price hike for foreigners trekking some of New Zealand's Great Walks, but Conservation Minister Eugenie Sage said tourists would understand.

'We need a smarter way to fund the great infrastructure tourists need to make the most of their time here,' said Sage.

'We want them to leave New Zealand with the best memories and part of that means providing the services they need to help them enjoy our country.

'It's only fair that they make a small contribution so that we can help provide the infrastructure they need and better protect the natural places they enjoy.'

The proposed levy would likely be implemented in the second half of 2019 following a legislative process.

Key aspects of the proposal:

* Most international visitors entering New Zealand for 12 months or less would be charged a levy, proposed to be between $25 to $35

* There would be some exemptions, most notably Australian citizens and permanent residents and people from most Pacific Island Forum countries

* The levy would be collected through visa fees and via the proposed Electronic Travel Authority process, also under consultation, for citizens of visa waiver countries

* The levy would collect around $57-80 million in its first year, depending on the rate, which will be split between tourism infrastructure and conservation activity.

Further information about the consultation process can be found at the Ministry of Business, Innovation and Employment website.