New Zealand to tax tourists to fund infrastructure

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

Published: 15th June 2018 12:10 PM  |   Last Updated: 15th June 2018 12:10 PM   |  A+A-

By PTI

WELLINGTON: New Zealand announced plans today to introduce a tourist tax and increase other fees for international visitors to fund infrastructure development in the face of a tourist boom.

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

"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 carparks."

A tax of NZ$25-35 (US$17-24) would be imposed on international visitors from mid-next year while price hikes for immigration fees and visas will take effect this November.

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

Tourism is a key pillar of the New Zealand economy and the new tax is expected to raise up to NZ$80 million in its first year, which will be split between tourism infrastructure and conservation initiatives.

The main opposition National Party claimed the new tax system would make New Zealand a "less attractive" destination.

But Davis believed the impact 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," he said.

 

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