Industry wants to levy 1.5 million Australians
The tourism industry remains unimpressed that 1.5 million Australian holidaymakers, by far New Zealand’s biggest market, will skip paying a proposed international visitor levy.
The Ministry of Business, Innovation and Employment is analysing 105 submissions on the levy, roughly half of them from local government, businesses and industry groups, before making a final policy announcement.
Major tourism groups are unhappy that Australians and Pacific Islanders – more than a third of our 3.7 million international visitors last year – would be exempt from the $25 to $35 a head charge that was estimated to raise up to $80 million annually.
Tourism Export Council chief executive Judy Chen said her members backed the levy, but wanted it paid by all overseas visitors and felt the proposed exemptions were too broad.
‘‘It leaves a large sum of collectible levy money on the table – around $37 million if the levy was set at $25 per person.’’
One of the arguments the Government put forward was that Australians were a more pricesensitive market, and the low cost of trans-Tasman travel meant they would be disproportionately affected, with a $30 levy adding 30 per cent to a $100 flight.
Chen said that might be the case for short weekend trips.
‘‘However, there’s a whole bunch of Australians that come over on 10-, 20-, or 30-day tours, so the fee would become pretty insignificant percentage-wise.’’
Tourism Industry Aotearoa (TIA) members surveyed about the levy were also concerned about Australians not paying, but chief executive Chris Roberts said it appeared trans-Tasman trade agreements precluded that.
This was unfortunate when Kiwis faced a $66 passenger movement charge when leaving Australia, but the key difference was Australians had to pay it too.
A number of other ‘‘silly’’ inconsistencies in the proposed levy needed fixing, Roberts said.
Airline and cruise-ship crews were expected to pay, but visitors aboard private yachts and cargoship crews were to be exempt because of claimed ‘‘administrative’’ difficulties.
The plan is that most visitors will pay the levy via an online electronic travel authority (ETA) starting next year.
TIA favours delaying introduction of the levy and the ETA until 2020 to ensure it was not rushed or poorly implemented, which would have serious risks for New Zealand’s reputation.