Visiting New Zealand is about to get more expensive, as the country is drastically increasing the fee it charges international visitors…
New Zealand international visitor levy increasing to 100 NZD
New Zealand requires visitors from visa waiver countries to apply for an Electronic Travel Authority (ETA) prior to travel, as is the case with many countries around the world. Not only does applying for the ETA incur a fee, but the country also charges an International Visitor Conservation and Tourism Levy (IVL), which is intended “to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand.”
The IVL was first introduced in July 2019, and costs 35 NZD (~22 USD) per visitor. The cost of this is about to increase drastically — as of October 1, 2024, New Zealand’s IVL will increase to 100 NZD (~66 USD) per visitor, so that means it’s nearly tripling. Here’s how the country justifies this move:
“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 $11 billion in the year ending March 2024.”
“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 was introduced in 2019 as a mechanism to ensure international visitors were contributing directly to these costs, the vast majority of which are paid for by New Zealand taxpayers and ratepayers.”
“A $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. Increasing the IVL means we can continue to grow international tourism to support economic growth while ensuring international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks and other highly visited areas and improving visitor experiences on public conservation land.”
My take on New Zealand increasing its visitor fee
In general, I of course prefer that countries have as few barriers to tourism as possible. The more of a headache and the more costly it is to visit a destination, the less appealing it is to many prospective travelers. That being said, I suspect New Zealand will have no issues getting away with this.
For one, New Zealand is a fairly high-end tourist destination. It’s not Bali or Phuket, as most people traveling to New Zealand aren’t just looking for a cheap way to party. New Zealand has so much natural beauty, and there’s no country quite like it.
If the international visitor levy is actually used for the purposes claimed — to ensure visitors contribute to public services — then I think that’s fair enough. However, is that actually how the money ends up getting spent? I dunno…
As you’d expect, the country’s tourism association opposes these changes, claiming that “New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness.”
Keep in mind the tourism levy was only introduced in the middle of 2019, and months later, the world shut down due to the pandemic. New Zealand’s borders stayed closed longer than just about anywhere else in the world, so New Zealand is definitely a bit behind when it comes to its recovery.
Currently New Zealand’s tourism numbers are about 80% of what they were pre-pandemic, while tourism spending is about 95% of what it was pre-pandemic.
Bottom line
Visiting New Zealand is about to get more expensive. In addition to needing an Electronic Travel Authority (ETA), visitors also need to pay an International Visitor Conservation and Tourism Levy (IVL). As of October 2024, the cost of this will increase from 35 NZD to 100 NZD.
While that’s a drastic increase, I doubt this will materially impact the number of visitors who choose to travel to the country, given the type of visitors that New Zealand gets. Then again, if New Zealand has the goal of drastically increasing tourism spending, then I don’t think this will help…
What do you make of New Zealand’s new tourism levy?
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