Travel taxes threaten NZ tourism industry recovery

Travel taxes threaten NZ tourism industry recovery

Moves by cash-strapped governments to raise money by taxing international air travellers are worrying New Zealand’s tourism industry.

The German Government has recently announced plans to impose a departure tax on all travellers leaving German airports. This follows increases to the British Air Passenger Duty (APD) levied on passengers departing UK airports. The new British Government has pledged to replace the APD but it will impose a per-plane duty instead.

The Tourism Industry Association New Zealand (TIA) and the Inbound Tour Operators Council (ITOC) fear other countries may also start taxing travellers, increasing ticket costs and delaying the recovery of the tourism industry.

“These governments are taking the easy way out by taxing travellers, who are seen as easy targets. Although both the German and British governments have claimed the taxes are to combat climate change, there is no evidence to show the money will go into environmental projects,” TIA Chief Executive Tim Cossar says.

“We agree with International Air Transport Association (IATA) Director General and CEO Giovanni Bisignani who described the German proposal as ‘a cash-grab by a cash-strapped government’.”
ITOC Chief Executive Paul Yeo says the taxes are a kneejerk reaction to European economic difficulties.

“Airfare increases will leave travellers with less money in their pockets when they arrive in New Zealand. Germany visitor numbers to New Zealand have grown nearly 4% in the last year and they are among our biggest spending markets, adding $269 million to our economy a year. We don’t want to see barriers placed in their way,” Mr Yeo says.

“Of real concern is the possibility that other governments around the world, especially in our major Asian markets, may follow suit, increasing the cost of travelling to New Zealand for their citizens.”

TIA, ITOC and other industry representatives have met with government officials to discuss the potential actions New Zealand can take to minimise the impact these air taxes will have on the travelling public. TIA and ITOC are also working closely with their industry counterparts in Australia on the issue.

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