Thursday, 5 September 2024

New Zealand’s really dumb tourism move



New Zealand is a long way from just about anywhere on the planet.

It is not only remote; it is time-consuming and expensive to get to.

It is beautiful when you arrive, but its location is certainly a deterrrent for many visitors.

So what has the New Zealand government - apparently not the brightest sparks in the tool shed - decided to do? Increase taxes on tourists.

Yep. Travellers to New Zealand will soon have to shell out more to visit the country.

Tourist fees are almost tripling from October.

The International Visitor Conservation and Tourism Levy will soar to NZ$100 from NZ$35 from October 1.

The government says the massive hike will "ensure visitors contribute to public services and high-quality experiences while visiting New Zealand".

But the increase could [that means will] deter many would-be travellers, says Tourism Industry Aotearoa.

“New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our competitiveness,” Rebecca Ingram, the TIA chief executive, said.

New Zealand first introduced the levy in 2019.

Tourism Minister Matt Doocey says it won’t be a big deterrent, as it makes up only a small percentage of the average travel budget to new Zealand. less than 3% of most tourists’ average spend in the country.

Doocey, who sounds like a bit of a dill, said the advice he had received was that there would be no "significant" decrease in visitor numbers, contrary to what tourism industry has said.

"The advice that I've received from officials is there is no evidence that the increase of the IVL will have significant impact on visitor numbers.

"In fact... most tourism operators are telling me that they're getting higher yield from their products and delivering better-quality experiences."

Interestingly, Doocey has no tourism experience, but has worked in mental health.

Thankfully travellers from Australia and the Pacific are exempt from paying the tourist fee.

Those from other parts of the world may well opt for somewhere where they are more welcome.

“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,” said Dr. Xie Xingquan, IATA’s regional vice president for North Asia and Asia-Pacific.

Cruise Lines International Association Australasia also recently criticised the New Zealand government’s proposal to impose a triple digit hike in cruise related fees.

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