Northland tourism operators are divided on whether a hiked international tourist levy will impact the region.
Northland tourism operators are divided on whether a hiked international tourist levy will impact the region.
Northland tourism and hospitality businesses have mixed views on the Government’s move to make international visitors pay more to visit New Zealand.
From October 1, an international tourism levy charged to visitors to New Zealand will increase from $35 to $100 to ensure they contribute to public servicesand boost economic growth.
Minister for Tourism and Hospitality Matt Doocey and Minister of Conservation Tama Potaka announced the change on September 3.
Business Paihia spokesman Andy Larsen, who owns Bay of Islands Lodge, said he had “mixed views” on the hiked tax.
“We don’t like seeing international visitors paying more to come into the country. It’s just another fee.
Bay of Islands Lodge owner Andy Larsen said he didn’t believe the international tourism levy hike would have a major effect on Northland. Photo / Peter de Graaf
“Any more costs to tourists are always a bit of a burden but on the other hand if it’s going to pay for the upkeep of our parks and we’ll see an improvement, it’s not that much.”
Larsen said he didn’t think the levy would stop people visiting New Zealand.
“Possibly the lower end of the market, it might affect more; it’ll add up for families and sports teams ... certain markets might think twice.
Duke of Marlborough hotel co-owner Anton Haagh said the levy hike was “good in theory” but after several tough years it would be good to “leave things alone”.
“Northland is still well behind pre-Covid levels.
“If we’re facing a change in tourism strategy, it may be making it harder to get back to where we were.
“After five years, can you please just let us get back to where we were before it changes, things have been tough enough.
“We had [Cyclone] Gabrielle and then the Brynderwyns – it’s enough.”
Duke of Marlborough hotel co-owner Anton Haagh said after several tough years for Northland tourism and hospitality businesses it would be good to “leave things alone”.
The International Visitor Conservation and Tourism Levy (IVL) was introduced in 2019 to ensure international visitors were contributing to regional infrastructure and conservation costs.
It is currently set at $35 and is charged to most tourists, people on working holidays, some students and some workers coming to New Zealand.
The levy goes towards maintaining public services utilised by tourists during their stay in New Zealand and supporting tourism sites.
Doocey said the Government was “serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years”.
“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,” he said.
“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.”
Bay of Islands businesswoman Vanessa Owen said visitor levies and taxes were “everywhere” in Europe. Photo / Jenny Ling
Bay of Islands businesswoman Vanessa Owen, who owns Driftwood Seaside Escapes and just returned from four months in Greece, said visitor levies were “everywhere” in Europe.
Tourist taxes are added on to accommodation in most European countries, including around €4.50 a night in Venice and €2.50 in Greece.
“People accept it, that’s how it is, so it’s probably how it’s going over here.
“I don’t think it’ll stop people coming to New Zealand.
“But the marketing behind it has to be that we’re a premium place, we’re a premium product.
“Europeans won’t think twice about it.”
The IVL is paid when someone requests a NZeTA (New Zealand Electronic Travel Authority) or applies for a visa.
Not everyone entering New Zealand needs to pay it - those exempt include anyone travelling on an Australian or New Zealand passport, a passport from many Pacific Island nations, transit passengers, and those holding a New Zealand or Australian resident visa.
Northland Inc head of destinations Tania Burt said New Zealand was already “relatively expensive” for international visitors to access.
“We don’t expect Northland tourism to be affected more than any other region in New Zealand... especially given Australian visitors are excluded from the levy, who make up Taitokerau Northland’s largest international visitor market.”
Burt said there was an opportunity for regional tourism organisations like Northland Inc to work alongside the Government on funding solutions “which look at the entire system, rather than just the International Visitor Levy in isolation”.
“We need a strategy for tourism funding, not just what we charge but also how we invest it at places where the tourism activity occurs.”
Jenny Ling is a news reporter and features writer for the Northern Advocate. She has a special interest in covering roading, lifestyle, business, and animal welfare issues.
