Travellers could be required to pay a little extra on their next trip to and from New Zealand, as the Government mulls over a new border clearance levy.
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.
The announcement of the levy follows recent figures that show New Zealand visitor arrivals are expected to climb to 3.75 million by 2021 – this is a dramatic increase from the 2.9 million that travelled to the land of the long white cloud last year.
Image: Jiri Foltyn/Shutterstock
However, New Zealand tourism leaders say the new levy may ‘irritate’ travellers and stunt expected tourism growth.
Using other countries that have imposed similar taxes, the Tourism Industry Association’s (TIA) CEO, Chris Roberts said it could have a dampening effect on travel.
“International visitors spend $10.3 billion a year in the New Zealand economy, including $700m a year in GST collected by the Government. They are already making a substantial contribution and there is no justification for this new tax.”
Chris Roberts, TIA CEO
However, TIA remains hopeful that it won’t have a ‘significant impact’ on visitor arrival numbers at least not ‘in the short term.
Roberts also expressed fears of government ‘tendencies’ to escalate such taxes once they are in place.
TIA’s Chris Roberts says new tax could potentially impact tourism.
“New Zealand is currently a highly desirable destination. There is a small potential positive impact on domestic tourism, as Kiwis elect to holiday at home instead of taking a trip to Australia or the Pacific islands. But this would not offset potential losses from international visitors.”
Chris Roberts, TIA CEO
The government has indicated there will be a consultation period beginning in early June, when the public and industry will get the chance to provide feedback on the design, introduction and level of the levy.
TIA will participate in that process.
Meanwhile, at TRENZ this week, TIA also revealed that New Zealand’s tourism industry is expected to employ an additional 36,000 full-time workers by 2025.