DestinationsThe new tax will help the destination cope with tourist influx and help bolster infrastructure and conservation.

New Zealand to begin taxing tourists from mid-next year

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A view of Queenstown, New Zealand. Tourist arrivals have risen by nearly a third in the past three years to 3.8 million in the year to April.
A view of Queenstown, New Zealand. Tourist arrivals have risen by nearly a third in the past three years to 3.8 million in the year to April. Photo Credit: wnjay_wootthisak/Getty Images
Tourists to New Zealand will be charged a special tax under new government plans announced on Friday (June 15) to cope with the growing influx of visitors. 

A tax of NZ$25-35 (US$17-24) will be imposed on international visitors from the middle of 2019, while price increases for immigration fees and visas will start in November, South China Morning Post reported. 

Foreign tourist arrivals have risen by nearly a third in the past three years to 3.8 million in the 12 months to April – a figure that almost rivals the country’s population size.

“This rapid growth has impacted on the costs and availability of publicly-provided infrastructure,” tourism minister Kelvin Davis said. “Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to car parks.”

Australians and most Pacific Island forum countries will be exempt from the new charges.

The new tax is expected to inject up to NZ$80 million in its first year, to be split between infrastructure and conservation.

The main opposition National Party claimed the new tax system would make New Zealand a “less attractive” destination. But Davis insisted the effect on tourist numbers would be minimal.

“When you’re talking about the additional cost to, say, someone coming from the United States who are already paying about NZ$1,200, an extra NZ$25-NZ$30 isn’t going to make that much of a difference.”

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