Industry backs $35 tourist tax

Tourism operators are generally supportive of a new $35 tax on every international visitor, even in light of government advice that it could see 20,000 tourists spending up to $70 million elsewhere.

But the industry wants to ensure that the $80m a year from the international visitor levy goes towards worthy projects, otherwise it will just be seen as an unnecessary tax grab.

The Government wants a law change in place so foreign visitors will start paying the levy and an Electronic Travel Authority (ETA) fee of between $9 and $12.50 by the second half of this year.

Most foreign visitors — but not citizens of Australia and several Pacific nations, or ship and air crew — will have to pay the $35 levy.

The ETA will mean visitors from countries that have a visa-waiver agreement with New Zealand — including the UK, US and European countries — will also have to pay a further fee and go online to get permission to travel here before arriving.

Tourism Industry Aotearoa chief executive Chris Roberts said the industry backed the new taxes — as long as the money was spent wisely. “[Exchange rates and fuel prices] have a far bigger impact on tourism growth.”

National’s Tourism spokesman, Todd McClay, has called the tax unnecessary, saying the Government already collects $3.27 billion a year in international tourism-related revenue, according to a Deloitte report.

The Government wants levy proceeds to be split 50/50 between conservation and tourism infrastructure.