Plan to tax tourists to fund infrastructure
WELLINGTON: New Zealand announced plans yesterday to introduce a tourist tax and increase other fees for international visitors to fund infrastructure development in the face of a tourist boom.
Tourism numbers in the country of 4.5 million have surged by nearly a third in the past three years to 3.8 million in the year to April.
“This rapid growth has impacted on the costs and availability of publicly-provided infrastructure,” tourism minister Kelvin Davis said.
“Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to carparks.”
A tax of NZ$25-35 (563-788 baht) would be imposed on international visitors from mid-next year while price hikes for immigration fees and visas will take effect this November.
Australians and most Pacific Island forum countries will be exempt from the new charges.
Tourism is a key pillar of the New Zealand economy and the new tax is expected to raise up to $80 million in its first year.
The main opposition National Party claimed the new tax system would make New Zealand a “less attractive” destination.
But Mr Davis believed the impact on tourist numbers would be minimal.
“When you’re talking about the additional cost to, say, someone coming from the US who are already paying about $1,200, an extra $25-$30 isn’t going to make much of a difference,” he said.