New Zealand Approves New Tourist Tax

New Zealand Parliament has approved a tourist tax that will take effect July 1.

The new legislation enables the collection of the International Visitor Conservation and Tourism Levy (IVL) as well as digital processing of the New Zealand Electronic Travel Authority (NZeTA).

The NZeTA—which is designed to “improve the way travelers are assessed before they arrive in New Zealand” to strengthen border security, according to the country’s immigration website—will be mandatory starting October 1.

Moving forward, most international visitors entering New Zealand for 12 months or less will be charged an additional fee of $35 NZD or about $23 USD. The new tax will be collected through the immigration system, the government said. Travelers will pay the IVL alongside visa or ETA fees.

Australian citizens, permanent residents and people from many Pacific Island countries will be exempted from the IVL.

“The IVL is an investment in New Zealand. It is expected to raise over $450 million over five years, funding projects to ensure our country and our people get the best from tourism growth. Our international visitors will be contributing directly to the infrastructure they use and helping to protect the natural places they enjoy,” said Tourism Minister Kelvin Davis in a statement.

“As visitor numbers rise we must ensure the tourism industry is part of the solution for our biggest conservation challenges; especially the impact of invasive predators like rats and stoats, and habitat loss and degradation. The levy enables visitors to give nature a helping hand,” added Conservation Minister Eugenie Sage.

New Zealand experienced a nearly 4 percent jump in international arrivals last year, according to data from Tourism New Zealand. The U.S. is New Zealand’s third-largest international visitor market, with Americans being the most satisfied with their experiences, according to Tourism New Zealand’s Visitor Experience Monitor research.

“Around 1.5 million visitors come to New Zealand each year from 60 visa waiver countries,” said Immigration Minister Iain Lees-Galloway. “The NZeTA will provide us with more information about those travelers before they arrive here and brings New Zealand’s border in line with international best practice.”