Government Focuses On Costs Over Growth With Visa Fee Hike

The announcement of $341 visitor visas for New Zealand, an unprecedented increase of 62% - and 69% more than Australia - shows the urgent need for the government to engage on its economic growth strategy, the NZ Airports Association says.

The government released details of its decisions to increase visa charges on Friday.

“The Cabinet papers supporting the decisions say there was no evidence presented by stakeholders that there could be tourism demand impacts from the fee increases. That’s because airports and airlines were not consulted,” NZ Airports Chief Executive Billie Moore says.

“The truth is that visitors will be turned off by paying over $300 just for their visa. Most Kiwis would be too, if they were in their shoes. And visitors have plenty of other choices for their travel, with most of our competitor countries focused on making themselves more attractive, rather than more expensive.

“We acknowledge that Ministers are focused on addressing critical challenges in the government’s budget. The government states that it wants those who benefit from visa processing to pay more of the cost. However, it is not just visitors who benefit from visa processing, but the whole economy – and the Crown accounts – when they spend money here.

“That’s why New Zealand spends millions promoting the country to visitors, including in priority visa markets like China and India.

“We need to focus on growing that economic contribution urgently.

“We might better understand the government’s approach if it were complemented by an export growth plan that shows joined up thinking across all government agencies, including on how we might recover this lost demand. The aviation sector is eager to contribute and support such a plan, including providing advice on barriers to industry growth.”

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