The Government looks to have cemented New Zealand as one of the most expensive countries in the world for a holiday today by increasing the International Visitor Conservation and Tourism Levy (IVL) to $100.

The total cost to cross the border has now reached $495-625,[1] 64-108% higher than just last year, and 70% more than Australia.

“Increasing the IVL, increasing visa fees, and proposals for new charges on regional airports have landed as a triple-whammy for our sector, which is trying to work hard for New Zealand’s economic recovery,” NZ Airports Chief Executive Billie Moore says.

“But this is not just about us - this is simply bad policy.

“The Government’s own modelling from just two years ago showed that a lift of $100 at the border could reduce visitor demand by up to 2.61%, or 101,000 visitors based on pre-pandemic levels.

“That’s around $446 million in visitor spend at risk[2] - spend that goes straight to businesses, supports jobs and generates GST for the Crown - for the sake of raising a funding pot for MBIE. And that doesn’t even capture the compounding impact of the visa fee increases.

“This will end up being a money-go-round with levies supressing demand and the government needing to spend more to stimulate it through tourism marketing.

“We are struggling to see how this makes sense from a government that wants to be pro-business and pro-growth.

“Back when the IVL was introduced, the National Party recognised it for what it was - a tax on tourists who already more than pay their own way through billions in GST that goes straight to the Crown.

“Ministers and agencies must look beyond their agency bottom lines and realise that this is not the way a country makes money and grows its economy.

“We urge the government to go back to its roots and get agencies working on policies that will grow tourism rather than stagnate it.”

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