Tag Archives: new zealand economy

The New Zealand travel and tourism industry is facing a storm as the government’s recent decisions on visa fees and the International Visitor Levy (IVL) threaten to derail its recovery efforts. The double whammy has significantly increased the cost of visiting the country, making it less attractive to international travellers. According to Dr. Xie Xingquan, Regional Vice President, IATA, North Asia and Asia-Pacific, the combined impact of these changes could delay the return of visitor numbers to pre-pandemic levels well beyond 2026. This is a major setback for the industry, which is a crucial contributor to the New Zealand economy. IATA had strongly opposed the increase in the IVL during the public consultation process for the IVL, arguing that it would harm the country’s competitiveness as a tourist destination. Unfortunately, the government ignored these concerns and applied the levy in the 2024 budget despite ongoing discussions. Dr. Xie also expressed concern about the lack of transparency regarding the allocation of funds collected through the IVL. He urged the government to consider investing these resources in initiatives that support the decarbonisation of the aviation sector. As the industry struggles with these challenges, it is clear that the government’s approach to tourism policy needs to be reassessed. By fostering a more welcoming environment for international travellers, New Zealand can position itself as a leading destination and drive economic growth.

Read More »