New tourism levy will cost $14m to collect

A new tourism and conservation levy will cost more than $14 million a year to collect and there are concerns its introduction has potential to cause travel chaos, along with a drop in visitor numbers.

The $35-a-head levy paid by international arrivals – excluding New Zealand and Australian passport holders – is expected to raise between $57m and $80m a year, and will become mandatory from October 1.

A just released Cabinet paper suggests introduction of the levy could see visitor numbers drop by about 15,000 in 2021, reducing visitor spending by $51m.

Tourists will pay the levy by applying for an electronic travel authority (ETA) but industry sources say it’s not clear what will happen if cruise or airline passengers turn up at check-in without an ETA. That could result in lengthy delays.

Tourism Industry Aotearoa chief executive Chris Roberts said it was good to finally get some detail about the new levy because overseas travel agents and tour operators needed the information as soon as possible.

‘‘There are serious risks to New Zealand’s reputation if the introduction of the ETA is rushed or poorly implemented’’.

Tourism Export Council chief executive Judy Chen said Immigration NZ officials wanted passengers to obtain ETAs at least 72 hours before travelling, and the ministry was talking to airlines and airports about the resources needed to handle last-minute applications.