The government is being urged to factor in the significant economic benefits that international visitors bring when considering the international visitor levy.
Photo: Supplied/ Air NZ
- A tourism industry body is concerned millions of dollars could be jeopardised
- That’s if the international visitor levy is hiked to $100 and travellers are deterred
- The $35 levy, which was introduced in 2019 to help visitors contribute more, is under review
Tourism Industry Aotearoa is warning the government could put millions of dollars at risk if the international visitor levy is hiked to $100.
Earlier this year, the government consulted on whether the levy should remain at $35 for most visitors or be increased to $50, $70 or $100.
The money raised goes towards tourism infrastructure and conservation projects.
Tourism Industry Aotearoa chief executive Rebecca Ingram said their calculations suggested a $100 levy could result in 48,000 fewer visitor arrivals and put $273 million of international visitor spend at risk.
“This would create a significant barrier at a time when the industry, our second largest export, is sitting around 80 percent of recovery,” Ingram said.
She was concerned a levy hike would be unpalatable for travellers in a highly competitive market, especially in light of increases to some visa and levy charges and cuts to Tourism New Zealand’s budget.
“We urge the government to factor in the significant economic benefits that international visitors bring and our export earnings, rather than focusing solely on cost recovery at the expense of our tourism sector,” she said.
A government decision on the levy is pending.
Tourism funding has been a frustration for the industry for years. Tourism and Hospitality Minister Matt Doocey has said nothing was off the table when it came to addressing the issue.
Ingram said the levy was part of the solution but it was a blunt instrument and new funding solutions were needed.
“We strongly support more elegant solutions that collect additional revenue while visitors are travelling through the country and do not present a large upfront cost when considering New Zealand as a destination,” she said.