Starting 01st of October, New Zealand will make it costlier to explore its renowned lakes, mountains, bike trails, and wineries as it raises the International Visitor Conservation and Tourism Levy (IVL) from NZ$35 ($22) to NZ$100 ($62). The hike, announced by Matt Doocey, the Minister for Hospitality and Tourism, aims to address the environmental and infrastructure costs associated with international tourism.
The IVL, introduced in 2019, was designed to help fund the conservation of New Zealand’s natural beauty and manage the impacts of tourism. According to Doocey, international tourists injected more than $11 billion into the New Zealand economy between March 2023 and March 2024, highlighting the sector’s significance. However, the increased levy reflects the rising pressures on local communities and the country’s conservation efforts.
“International tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate,” Doocey said in a statement.
Despite the rationale behind the increase, the decision has sparked criticism. Tourism Industry Aotearoa (TIA), representing travel industry professionals across the country, has expressed concerns that the higher IVL could hinder New Zealand’s tourism recovery and reduce its global competitiveness. “New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness,” TIA said. The group fears that potential visitors might choose destinations like Canada or the UK, where flights are more frequent and entry fees less prohibitive.
The IVL is not the only cost increase impacting travelers to New Zealand. As of October 1, visa fees will also rise significantly, from $131 to $211. While citizens of 60 countries, including the United States, Canada, Singapore, Japan, and Mexico, can still benefit from a visa waiver allowing them to stay for up to three months, they are still required to obtain an e-visa and pay the updated IVL.
The introduction of these new fees is expected to slow down visa processing times. Immigration New Zealand has advised travelers intending to visit during peak periods, such as the Christmas holidays and Lunar New Year, to apply for visas well in advance—by October 15 and November 15, respectively.
The debate surrounding “tourist taxes” is not unique to New Zealand. Around 60 destinations globally, from Venice to Bhutan, levy some form of entry fee to manage the effects of overtourism, such as congestion and environmental degradation. Studies, including one from Bangor University in Wales, suggest that these fees have not significantly deterred tourists from visiting these destinations.
As other locations, such as Edinburgh and Zermatt, consider implementing similar charges, it remains to be seen how New Zealand’s increased IVL will affect its tourism sector. Will the higher costs dampen interest or be seen as a necessary measure to preserve the country’s natural wonders?
For now, travelers to New Zealand should prepare for the increased expenses and potential delays, while the government in Wellington anticipates that these measures will help sustain and protect the country’s treasured landscapes for future generations.
