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New Zealand’s Tourism Costs Soar: Higher Taxes and Visa Prices Imposed

Exploring New Zealand’s breathtaking lakes, majestic mountains, scenic bike trails, and world-renowned wineries will soon become more expensive. The island nation has decided to substantially increase the cost of visiting by imposing hefty taxes on international tourists.

Increased Costs for International Tourists

Starting October 1, New Zealand will hike its International Visitor Conservation and Tourism Levy (IVL) from NZ$35 (Rs 1,825) to NZ$100 (Rs 5,214). Alongside this increase in IVL, tourist visa prices are also set to rise. On October 1, the cost of a tourist visa will leap from $131 to $211.

Rationale Behind the Increase

Matt Doocey, New Zealand’s Minister for Hospitality and Tourism, explained that international tourism exerts pressure on local communities by increasing maintenance costs and stressing regional infrastructure. This news was reported by CNN.

The IVL was initially introduced in 2019 to cover nationwide environmental protection costs. According to Doocey, international tourists spent more than $11 billion in New Zealand between March 2023 and March 2024.

Industry Backlash

Despite its intentions, the tax hike has provoked substantial criticism from the Tourism Industry Aotearoa (TIA), a consortium representing travel industry professionals across the country. TIA argued that the increase would harm New Zealand’s global competitiveness in the tourism industry, fearing they might lose tourists to destinations like Canada and the UK which have lower entry fees.

Visa Waivers and Processing Delays

Citizens from 60 countries and territories—including the United States, Canada, Singapore, Japan, and Mexico—are eligible for a visa waiver allowing them to stay up to three months for tourism purposes. However, these travelers still need an e-visa and must pay the new IVL.

Due to heightened requirements this year, New Zealand’s immigration authorities expect longer processing times for visas. Visitors planning Christmas holidays should apply by October 15, while those aiming for Lunar New Year should get applications in by November 15.

The Global Trend of Tourist Taxes

New Zealand isn’t alone in implementing such fees. Around 60 global destinations—from Venice to Bhutan—charge some type of entry fee or tax. These fees aim to counteract the impacts of overtourism such as congestion and environmental damage.

Conclusion

Whether termed IVLs, access fees or travel incentives, “tourist taxes” are gaining traction worldwide. With these new measures in place, future visitors to New Zealand need to prepare for increased costs but can take solace in contributing towards preserving this beautiful destination for future generations.

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