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In the wake of New Zealand Tourism Minister Kelvin Davis’ confirmation of plans for an International Visitor Levy, Tourism Industry Aotearoa (TIA) says that details on how and where any new tax on international visitors will be spent are critical to the tourism industry’s acceptance of the plan.

Speaking at the CINZ Meeting event yesterday, Minister Davis advised that the Government is pushing ahead with plans for the tax, with details to be revealed soon. He encouraged the tourism industry to ‘take part in the conversation’ about the new tax.

TIA Chief Executive Chris Roberts says the industry is eager to discuss what the Government plans to spend the tax revenue on and how it will be distributed, as well as details around how it will be collected.

Roberts advised “we’re ready for the conversation and we hope the Government is willing to listen. There are some big questions to be discussed, including what the Government plans to do with the money. Our international visitors will be more accepting of being asked to pay the new tax if they can see it is going to support infrastructure and services that enhance their visit to New Zealand.”

Roberts says the Government has indicated New Zealand residents and anyone travelling on a New Zealand passport will be exempt from paying the new border tax, commenting “we know that exemptions for Australians and Pacific Islanders are also being considered. This makes it a very complex tax to design and implement.

“Airline ticketing systems around the world are not set up to charge different taxes for different passengers, so we are very keen to see how the Government thinks the tax can work.”

Roberts says that in contemplating a further border tax, in addition to the existing Border Clearance Levy of $22 per passenger, it must be acknowledged that international visitors are more than paying their way.

Roberts adds “tourism is our biggest export industry and international visitors are not freeloading. While visiting New Zealand they pay on average more than $400 each in GST, as well as the existing border levies and other taxes.

“The Government can choose to add more taxes but the key issue is getting more of the revenue collected to where it is needed, in terms of providing infrastructure to support the visitor economy.

“We look forward to working with the Government on this issue to reach the best possible outcome for New Zealand.”

The New Zealand Recreation Association (NZRA) had earlier welcomed the introduction of the Levy, with Chief Executive Andrew Leslie highlighting the extent to which the tourism boom had placed pressure on recreational infrastructure and access.

Leslie advised “it has been great to see an increase in visitors to New Zealand, in many ways, the tourism boom has enhanced recreation in New Zealand, but there have been associated costs and pressure points that need to be addressed.

“At the national level, the Department of Conservation has, almost by default, borne the burden. Funding for DoC has not been adequate to cope with the pressures placed upon their carparking, wastewater and recreational infrastructure. This has forced the department to make some very tough decisions between catering for international visitors and their core roles of conservation and fostering recreation.

“Our hope is that when funding for infrastructure is allocated, it is kept in mind that a huge proportion of international visitors come to connect with our natural places on land managed by the Department of Conservation.

“On a local level, the most popular areas for international tourists have the least number of ratepayers. That places an extraordinary burden on the local councils in those areas, who are struggling to maintain their walking trails and cycleways – let alone build more.

“Expenditure on recreational infrastructure such as walking trails and cycleways, is not just a coping mechanism for the tourism boom. It also enhances the lives of New Zealanders by way of the numerous social, economic and health benefits of outdoor recreation.”

Images: New Zealand's tourism boom is putting pressure on recreational infrastructure and access such as the Otago Rail Trail (top), Chris Roberts (middle) and Andrew Leslie (below). 

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