We will pay three times: The dream country decided to raise tourist tax

New Zealand triples its tourist tax to cover environmental costs, raising concerns in the tourism industry about global competitiveness.

 New Zealand (photo credit: INSTAGRAM)
New Zealand
(photo credit: INSTAGRAM)

If you dreamed of a vacation in the wilds of New Zealand, you should prepare a little more money in your wallet. The country is increasing its International Tourism and Visitor Conservation Levy (IVL) from $22 to $62, effective October 1.

"International tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher maintenance and upkeep costs across our conservation estate," Matt Ducey, New Zealand's hospitality and tourism minister, said in an official statement.

The tourist tax, called the IVL, was originally introduced in 2019 as New Zealand's attempt to help finance and cover environmental protection costs across the country. And while for the environment the step is welcome, there are many who are not satisfied with the decision, which can seriously damage tourism in the country.

According to Ducey, international tourists spent more than $11 billion in New Zealand between March 2023 and March 2024. But will this amount increase, or will tourists look for another corner of the country to explore?

 Queenstown, New Zealand (credit: booking.com)
Queenstown, New Zealand (credit: booking.com)

A harsh criticism of the visa prices as well

Tourism Industry Aotearoa (TIA), criticized the decision. "New Zealand's tourism recovery is lagging behind the rest of the world, and this will further damage our global competitiveness," the group said in a statement. The group believes New Zealand will lose tourists to Canada and Britain, where flights are plentiful and entry fees less prohibitive.

The IVL is not the only additional cost that will affect tourists visiting New Zealand. Higher prices for tourist visas start on October 1, from $131 to $211.

Citizens of 60 countries and territories, including the United States, Canada, Singapore, Japan and Mexico, can enter New Zealand and are eligible for a visa exemption that will allow them to stay in the country for up to three months for tourism purposes. Travelers holding these passports are still required to obtain an electronic visa and pay the IVL.

Due to the new rules, delays in obtaining a visa are expected. Therefore, the authorities in New Zealand announced that if you plan to spend Christmas in the country, you must apply for a tourist visa no later than October 15th, and those who plan to arrive for the Lunar New Year should receive their applications by November 15th.