New Zealand Tourism Industry supports Visitor Levy

August 09, 2018
New Zealand Tourism Industry supports Visitor Levy


Presently, the tourism industry is ready in accepting a new levy payable by global visitors but it is insisting its targeted use for enhancing their experience in the country.

Tourism Industry Aotearoa has filed its case on the suggested International Visitor Conservation and Tourism Levy which says that the tourism operators extend support for its introduction but have made it conditional on many factors.

There must be clarity regarding the process of decision-making, as well as fund allocation  to priority sectors. The aim is to enhance the experience of the visitor. Such funding must be an addition  and must not replace the prevalent expenditure of the Government .

The tourism industry also does not favor further taxes or additional costs  like the regional levies and bed taxes.

Additional facts

The levy would require international visitors, which excludes residents of Australia and Pacific , in  paying  $25 -$35 additionally before they reach New Zealand. Moreover, it has the capacity to raise $57 million–$80 million in the initial year itself.

The collection mode will see a new Electronic Travel Authority, in which visitors of countries having the visa-waiver need to complete before their travel. They must also to pay $9 for the ETA, apart from the  Levy.

There is remarkable growth in Tourism in the last five years. It has successfully created jobs and fresh business opportunities, increasing the tax intake of the Government. This pace of growth has exposed years of lack of investment in infrastructure by the government. Furthermore, the I.V.L. aims to be a rich source of revenue to the Government and will be critical in usage to give benefit and make a notable difference to visitors.

The future

There is a need of planned and coordinated approach to tourism investment. Furthermore this will ensure that tourism will deliver benefits to New Zealand. Presently there is no detail on type and allocation of the IVL.

There must be an understanding regarding existing provision through other fund-channels, what is not functioning and the things remaining to do.

The IVL should cover these  areas:

  • Local and mixed-use infrastructure;
  • The public conservation estate;
  • Communities which have high visitor-resident ratio;
  • Tourism development and research;
  • Building capability of tourism business,

Process of decision-making 

There must be an involvement of representatives of tourism industry in the process of decision-making. This will help to ease the concerns of industry. Additionally the rate must not change for five years, so that there is certainty to the global visitors as well as to the tourism industry.

Finally there has to be a comprehensive PR campaign across the globe for educating the visitors regarding charging their arrival in New Zealand. There must be a detailed account of the issues where the money will go.

There will be a risk to the reputation of New Zealand if there is a poor implementation of this levy.

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