New Zealand is tripling the cost for tourists to enter the country.
The Tourism Minister says maintaining infrastructure and paying to preserve the country’s sprawling conservation areas are the reasons the price is being increased.
The levy fee will triple to $62 from Oct. 1.
But the charge does not apply to New Zealand or Australian citizens, or citizens of many Pacific Island nations.
Tourism groups are concerned the hike will dissuade travellers.
But the Tourism Minister says a $62 levy would represent about 3 percent of what the average international tourist spent in New Zealand, and an increased rate was in-line with Australia and the UK.
“Increasing the (levy) means we can continue to grow international tourism to support economic growth while ensuring international visitors contribute to high-value conservation areas and projects,” Tourism Minister Matt Doocey said on Tuesday.
“ … Such as supporting biodiversity in national parks and other highly visited areas and improving visitor experiences on public conservation land,” Doocey said.
New Zealand’s Department of Conservation oversees about 30 percent of the country’s land, designated as protected areas under various headings including national parks, animal areas and conservation areas.
The government introduced the $22 levy in 2019. In consulting on the hike, 93 percent of more than 1,000 respondents supported increasing the fee.
The current fee raises about $49.5 million each year, while New Zealand taxpayers pay about $547 million a year on tourism and conservation, Conservation Minister Tama Potaka said.
In the last financial year, the number of arrivals from Australia into New Zealand rose to 1.2 million.
Analysis by the New Zealand tourism department shows Australians spend about $1.9 billion each year in Aotearoa.
About 39 percent of Australian visitors are going for a holiday, and 42 percent are visiting friends and family.
More than half, 58 percent, fly direct to the South Island, and more Australians land in Queenstown (43 percent) than in Auckland (38 percent).
The New Zealand Airports Association boss said the increase “cemented New Zealand as one of the most expensive countries in the world for a holiday today.”
“Increasing the (levy), increasing visa fees, and proposals for new charges on regional airports have landed as a triple-whammy for our sector, which is trying to work hard for New Zealand’s economic recovery,” NZ Airports chief executive Billie Moore said.
The New Zealand economy tipped into a recession on the back of the COVID-19 pandemic, something the Australian economy managed to avoid.
The recession in New Zealand technically ended in June this year. As well as the pandemic smashing the country’s key tourism sector, fuel and labour costs hamstrung the biggest industry, being agriculture.
The Reserve Bank of New Zealand hiked interest rates to a 14-year high of 5.5 percent, before finally making a cut at its most recent meeting in August.