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Increase to international visitor levy proposed

The Wānaka App

26 May 2024, 5:04 PM

Increase to international visitor levy proposedNow that tourists are returning it’s a good time to consider potential increases to the International Visitor Levy, says MBIE.

Tourists are returning and it’s time to have a fresh look at the international visitor levy (IVL), says the Ministry of Business, Innovation and Employment (MBIE). 


Members of the public have two more weeks to weigh in on whether or not the IVL, a $35 fee most international visitors pay on arrival into New Zealand, should be increased.



The IVL was established in 2019 to help visitors more fairly contribute towards the services they use in New Zealand and to support sustainable tourism.


“Five years on from its introduction, it is time to review the $35 amount,” MBIE said in a statement. 


“....visitor numbers are returning and the government wants to ensure the levy is set at an amount which adequately contributes towards the places and services visitors use in New Zealand.”


The government believes too many costs imposed by international visitors are paid by taxpayers and ratepayers, MBIE said.



At 2019 visitor volumes, the $35 IVL raises around $80 million per year yet some estimations calculated that the unfunded costs of international visitors were around $250 million in the same year.


Queenstown Lakes District Council (QLDC) has tried, unsuccessfully so far, to implement its own district-wide visitor levy in the form of a bed tax.


More than 80 percent of Queenstown voters supported a visitor levy to support infrastructure in a non-binding 2019 referendum but it hasn’t received the government support it needs to be implemented.



Four different IVL options are being proposed nationally: the IVL remains at $35; increasing it by $15 to $50; increasing it by $35 to $70; and increasing it by $65 to $100. 


The IVL funding is split across tourism and conservation.


The government is also seeking public feedback on which projects within those two areas should receive funding. 


Members of the public have until June 11 to have their say via an online survey or submission.


PHOTO: Wānaka App