New Zealand’s tourism leaders aren’t just urging the government, they’re now telling them ‘they must rethink’ the new Travel Tax.
The border levy has been the topic of debate in New Zealand since it was introduced during the May Budget.
The Coalition Against Travel Tax (CATT), led by the Tourism Industry Association New Zealand (TIA) says the decision to introduce the tax was rushed and not researched.
CEO, Chris Robert said if launched as scheduled it will not only be detrimental to tourism but in turn the New Zealand economy.
“The tax was put together in haste immediately before the May Budget with very limited analysis and no consultation.”
Chris Roberts, TIA Chief Executive and CATT Spokesperson
“It ignores a long-standing understanding in New Zealand that border services are a public good and should therefore be funded from general taxation.”
Taking research into their own hands, CATT under the Official Information Act released information on an independent analysis commission by the Government that estimates the Travel Tax would reduce international visitor numbers by 1.4 percent and cut their expenditure by 0.9 percent.
This equates to a loss of 44,000 visitors a year and spending of $104 million.
Roberts said more research is required into the potential impact. He urged the government the move back the launch date to 2017 so that groups could investigate further.
“A small bad tax is still a bad tax.”
Chris Roberts, TIA Chief Executive and CATT Spokesperson
“It is an unwelcome signal being sent by Government – that it is willing to impose risks on efforts to grow the value of the visitor economy, contrary to the goals of its own Business Growth Agenda.”