New Zealand’s tourism leaders have expressed concern that the benefits from recent improvements to visa processing may be negated by a new border levy.
This week, the NZ Government announced it will roll out online work and visitor visas, making it simpler for travellers to visit the country.
The news was welcomed by Auckland Airport’s boss, who said it is a ‘significant development’ for New Zealand’s tourism industry.
“Attracting international tourists is an increasingly competitive business. We need our visa process to be as simple and as easy as possible for tourists.”
Charles Spillane, Auckland Airport General Manager Corporate Affairs
“We are especially pleased that Chinese visitors can now apply for visitor visas online using a Chinese language form.”
However, celebrations were short lived.
The Tourism Industry Association New Zealand (TIA) said tourism benefits from easier visa applications could be outweighed by a new border clearance levy introduced during the recent Budget.
Expected to take effect from 1 January, the tax will be around $16 for arriving passengers and around $6 for departing passengers. Exact figures will be revealed closer to the launch date.
For international travellers, this would mean forking out around $22 on top of the money already spent to travel to and from the country.
TIA, the group spearheading a coalition of industry organisations and business leaders to fight the new travel tax, Chief Executive Chris Roberts said the tax makes it ‘more costly’ for travellers to visit New Zealand.
“While the Government is breaking down barriers to travel with one hand, it is building them up on the other.”
Chris Roberts, TIA Chief Executive
International visitors contribute around $10.3 billion to New Zealand’s economy every year, including $700 million a year in GST collected by the Government.
“The Government already receives a direct net benefit from any increase in international visitors through GST and there is no justification for taxing travellers for arriving or leaving our country,” Mr Roberts added.
“It’s entirely the wrong signal to send as we strive to achieve our 2025 goal of almost doubling total tourism revenue to $41 billion.”