New Zealand Increases International Visitor Levy to NZ$100

Wellington, September 2024 – Starting October 1st, New Zealand will implement a significant increase in its International Visitor Conservation and Tourism Levy (IVL), raising it from NZ$35 to NZ$100. The nearly threefold hike has sparked discussions about its potential impact on international tourist numbers.

The New Zealand government has defended the substantial increase, emphasizing its importance in fostering economic growth and ensuring that tourists contribute fairly to public services and the quality of experiences available in the country. This move is part of a broader strategy aimed at mitigating the environmental impact of tourism while bolstering the local economy.

“The International Visitor Conservation and Tourism Levy (IVL) will be raised to NZ$100 to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand,” said Minister for Tourism and Hospitality Matt Doocey and Minister of Conservation Tama Potaka.

Minister Doocey highlighted the critical role international tourism plays in New Zealand’s economy, noting that visitors spent over NZ$11 billion in the year ending March 2024. However, he also pointed out the associated costs borne by local communities, including increased pressure on regional infrastructure and higher maintenance expenses across conservation areas.

“The government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years. International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over NZ$11 billion in the year ending March 2024," Doocey said. "But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate."

The IVL, introduced in 2019, was designed to ensure international visitors contribute directly to these costs, which are predominantly covered by New Zealand taxpayers and ratepayers. Public consultation conducted by the Ministry of Business Innovation and Employment (MBIE) revealed overwhelming support for the increase, with 93% of submitters agreeing that a higher levy was justified to help cover the costs associated with tourism.

"The new IVL remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world,” Doocey added. "A NZ$100 IVL would generally make up less than 3 per cent of the total spending for an international visitor while in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers."

The increased IVL is expected to support economic growth by allowing continued investment in high-value conservation projects and improving visitor experiences in public conservation areas. The levy will fund initiatives such as biodiversity support in national parks and enhancing tourism infrastructure in heavily visited sites like Milford Sound, Aoraki/Mt Cook, and the Tongariro Alpine Crossing.

“Taxpayers already contribute close to NZ$884 million a year directly on tourism and conservation, including tourism promotion, natural heritage, and recreation. This money funds Tourism New Zealand, protects biodiversity within the Department of Conservation estate, and provides quality experiences at the likes of Milford Sound, Aoraki/Mt Cook, and the Tongariro Alpine Crossing,” Potaka stated.

The government remains confident that despite the increase, New Zealand will retain its appeal as a premier international travel destination, with the higher levy contributing to the sustainable management of its natural and cultural resources.