From October 1, 2024, the New Zealand government has declared a significant increase in theInternational Visitor Conservation and Tourism Levy (IVL). The tax was originally 35 NZD, but will be tripled to 100 NZD (56 €). Most international visitors entering New Zealand for less than 12 months are required to pay the VILI.
Objectives and reasons for the increase
Supporting ecological tourism
The main aim of the IVL increase is to encourage the development of sustainable tourism in New Zealand. The money raised will be used to fund initiatives to preserve the environment and improve the country's tourism infrastructure.
According to New Zealand's Ministry of Tourism, this increase will enable more effective management of the impact of tourism on the environment and local communities.
“A VIF of 100 $ would typically account for less than 3 % of an international visitor's total expenditure during their stay in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers."according to the Minister of Tourism and Hospitality Matt Doocey and the Minister of Conservation Tama Potaka.
In general, applications for visas or electronic travel authorizations (NZeTA) requires the collection of IVL for entry and transit with baggage reclaim. These resources are collected and managed by the New Zealand Immigration Department.
From October 1, 2024, a traveler who uses the mobile app to obtain his or her electronic travel authorization will have to pay 117 NZD (65 €), compared with 52 NZD at present, while an online application will cost 123 NZD (69 €), compared with 58 NZD at present.
Exceptions and specific situations
Certain people are exempt from the VILI, such as :
- Australian nationals
- Australian permanent residents
- nationals of Pacific Islands Forum countries (except New Caledonia and French Polynesia)
- persons holding diplomatic, military, medical and humanitarian visas.
Influence on various visa categories
Working Holiday Visa (WHV)
The Working Holiday Visa will also be affected. The PVT will cost a total of NZD 705, rising to NZD 770, with the visa fee of NZD 670 and the IVL of NZD 100.
Student Visa
Foreign students staying less than 12 months will also have to pay a higher tourist tax. However, those enrolling in longer study programs will be exempt.
International analysis
New Zealand isn't the only country to impose a tourist tax. Here's a list of comparable taxes in other popular destinations:
Japan (1,000 yen), Bali (150,000 Indonesian rupiahs), Venice (3 to 10 euros depending on the season), Bhutan (200 to 250 dollars per day) or the Galapagos Islands ($100).
Forecast use of additional funds
A detailed plan has been presented by the New Zealand government for the use of the additional revenues generated by the increase in the VIF. Here is a summary of the main investment sectors:
| Investment area | Percentage allocated | Estimated amount (in millions of NZD) |
|---|---|---|
| Biodiversity conservation | 35% | 70 |
| Tourist infrastructure | 30% | 60 |
| Waste management and recycling | 15% | 30 |
| Tourism training and education | 10% | 20 |
| Research and innovation | 10% | 20 |
According to New Zealand's Ministry of Economic Development, this increase will lead to a increased revenues of around US$200 million per yearbased on visitor forecasts for 2025. These funds are expected to play an important role in financing sustainable tourism and preservation projects.
According to the Dr Xie XingquanAccording to IATA's Regional Vice President for North Asia and Asia-Pacific, rising costs for travelers could hamper the recovery of tourism in New Zealand, reducing its competitiveness as a destination. It is possible that this situation could prolong the economic problems for the sector beyond 2026, which represents a significant timeframe for an industry still evolving in the aftermath of the pandemic.
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