The International Visitor Conservation and Tourism Levy (IVL) will be raised from $35 to $100 from 1 October to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand, Minister for Tourism and Hospitality, Matt Doocey announced today.
“The Government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years. International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over $11 billion in the year ending March 2024,” Mr Doocey says.
“But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate.”
The IVL was introduced in 2019 as a mechanism to ensure international visitors were contributing directly to these costs – the vast majority of which are paid for by New Zealand taxpayers and ratepayers, the Minister said.
Public consultation by the Ministry of Business Innovation and Employment (MBIE) found 93% of submitters supported raising the IVL, with the main rationale being an increase would be reasonable to help cover the costs of tourism.
MBIE received a total of 1,101 submissions on the proposed changes to the IVL, including 1,011 responses via the online survey and 90 responses via email.
“The new IVL remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world,” said Mr Doocey.
“A $100 IVL would generally make up less than 3% of the total spending for an international visitor while in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers.
“Increasing the IVL means we can continue to grow international tourism to support economic growth while ensuring international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks and other highly visited areas and improving visitor experiences on public conservation land,” he said.
Minister of Conservation, Tama Potaka said taxpayers already contribute close to $884 million a year directly on tourism and conservation, including tourism promotion, natural heritage and recreation.
“This money funds Tourism New Zealand, protects biodiversity within the Department of Conservation estate and provides quality experiences at the likes of Milford Sound, Aoraki/Mt Cook and the Tongariro Alpine Crossing,” said Mr Potaka.
Proposals for government investment to support tourism growth and conservation will be considered in due course, the Ministers said.
Visitors that are exempt from the requirement to pay the IVL include New Zealand and Australian citizens and permanent residents, diplomats and people from many Pacific Island countries.
