New Zealand is to sharply increase its entry tax on foreign tourists in a move many fear could discourage visitors.
The cost of the Conservation and Tourism Levy for international visitors will almost triple, from NZ$35 (£16.52) to NZ$100 (£47.20) from 1 October.
The government said this was to boost economic growth and “ensure visitors contribute to public services and have a high-quality experience when visiting New Zealand”.
But Tourism Industry Aotearoa – the country’s independent tourism body – said the higher fees were a deterrent to visitors, making visiting “extremely expensive”.
“New Zealand’s tourism recovery is lagging behind the rest of the world and this will further reduce our global competitiveness,” said Rebecca Ingram, the association’s chief executive.
New Zealand first introduced the tax in 2019 as the country grappled with the impact of large numbers of tourists on infrastructure, the environment and communities.
During the coronavirus pandemic, The country has closed its borders for two and a half years. and not allowing foreign tourists to return until August 2022.
The country is struggling to return to pre-pandemic tourist levels, while the overall economic recovery has been weak.
A conservative coalition led by the National Party was elected to power in last year’s election on a promise to improve the economy.
Tourism Minister Matt Doocey argued the new tax would not be a major barrier, as NZ$100 represents less than 3% of the average spend by most tourists in the country.
He said New Zealand remained competitive compared to countries such as Australia and the UK, and he remained “confident New Zealand will continue to be seen as an attractive destination by many travellers around the world”.
Visitors from Australia and the Pacific do not need to pay this tax.
The extra cost will be added to separate visa fees for some visitors, which will also increase from October 1.
New Zealand is not the only place that imposes a tourist tax.
Other countries that charge visitors fees include Indonesia, Spain, France, Austria, Croatia, Costa Rica, Iceland and Italy.
In most places, taxes are included in the cost of accommodation, visas or airfare.
In April, Venice conducted a test where day visitors pay a 5 euro tax to visit the city on peak days, aimed at combating the effects of overtourism.
