AusLeisure

The New Zealand Government has announced details of its planned tourism tax, with international visitors to pay between $25 and $35 from late next year.

Prompted by onging concern about the environmental and infrastructure pressures put on the country by its booming tourism industry, introduction of a tourism tax was part of the manifesto of the current New Zealand Government during last year’s election.

International tourism numbers in the country of 4.5 million people have surged by nearly a third in the past three years to 3.8 million in the year to April.

New Zealand Tourism Minister Kelvin Davis explained “this rapid growth has impacted on the costs and availability of publicly-provided infrastructure.

”Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to carparks.”

New Zealand Conservation Minister Eugenie Sage added “it’s only fair that (visitor) ake a small contribution so that we can help provide the infrastructure they need and better protect the natural places they enjoy.”

The tax is expected to raise up to $80 million in the first year, with the money to be split between tourism infrastructure and conservation funding.

It will be collected through a newly proposed electronic travel registration process.

The move has been welcomed by Local Government New Zealand who advised that it is “a significant and principled step forward” from the present position where ratepayers solely fund both the capital and operational costs of tourism mixed-use infrastructure and facilities.

LGNZ Chief Executive Malcolm Alexander stated “LGNZ has for many years been advocating for a greater contribution from tourists to the ongoing costs of mixed-use infrastructure, particularly in areas such as Queenstown, Central Otago and the West Coast where there are very high number of visitors compared to the number of ratepayers,”

“The debate now needs to move to how that money should be collected and allocated.”

“The preference is for a local tourist accommodation levy, commonly used around the world. Such an approach would allow councils to decide whether they wished to continue subsidising tourist infrastructure or meet part of the costs through a levy.”

“This would introduce a competitive aspect to location taxation that would drive performance improvements and incentivise a community to enhance the local value offering for tourists to tempt them to stay in a region. This approach would break the cycle of benefits being captured entirely by central government but local communities bearing the costs.”

Tourism Industry Aotearoa emphasised that ensuring the extra tax revenue to be collected from some international visitors is spent wisely will be the focus of the tourism industry

TIA Chief Executive Chris Roberts advised “no final decisions have been made on the split between conservation and tourism, what sort of projects should be funded, or how the decisions should be made. The tourism industry is ready to participate in a robust and constructive discussion on these crucial details.

“Our international visitors will be more accepting of being charged to come to New Zealand if they can clearly see it is going to support infrastructure and services that enhance their visit.”

Australian citizens and permanent residents (the biggest group of visitors to New Zealand, making up 39%, or nearly 1.5 million annual visits), people from Pacific Islands Forum countries and children under two will be exempt.

Images: New Zealand's tourism boom is putting pressure on infrastructure in Aucklland (top) and the Otago Rail Trail (below). 

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