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new zealand's government announced on tuesday that it would significantly increase the entry tax levied on foreign tourists from october 1, roughly tripling the original amount, sparking criticism from the tourism industry that higher taxes could deter visitors from coming.

new zealand tourism minister matt ducey said that the entry tax for tourists will be raised from the current 35 new zealand dollars (about 155 yuan) to 100 new zealand dollars (441 yuan). in addition, starting from the beginning of next month, the visa fee will be increased by 130 new zealand dollars (573 yuan) to 341 new zealand dollars (1,500 yuan).

ducey claimed that increasing the entry tax for foreign tourists would help new zealand continue to develop international tourism to support economic growth, and would also enable international tourists to donate to high-value protected areas and related projects, such as supporting biodiversity in national parks and improving the visitor experience in public protected areas.

controversy

but the increase in the tax has sparked criticism from the new zealand tourism industry association, which previously analyzed that a nz$100 foreign visitor tax could "scare away" 48,000 tourists each year.

"these changes make travel to new zealand more expensive and less attractive, and could further delay the recovery of the tourism industry," xie xingquan, iata's vice president for north asia, said in a statement.

xie xingquan pointed out that this is a double blow to new zealand's tourism industry. first, the new zealand immigration service announced a significant increase in visa fees, and now the entry tax for foreign tourists has been increased.

but ducey believes that the new foreign tourist tax is still competitive compared with countries such as australia and the united kingdom, and believes that new zealand will continue to be seen as one of the attractive tourist destinations.

before the covid-19 pandemic, tourism was new zealand's largest export earner, surpassing dairy exports, according to tourism new zealand, but the country's recovery has been limited by factors including reduced airline capacity.

about 3.2 million foreigners came to new zealand in the 12 months to june. new zealand's spectacular natural scenery is often in remote areas where local councils cannot afford to maintain infrastructure, and the government wants tourists to contribute more to those costs and environmental protection.

since july 2019, new zealand has imposed a tourist tax of nz$35 per person on most foreigners entering the country temporarily, but it is still not enough to cover the excessive expenses brought to the country by tourists.

the new zealand government estimates that nz$100 represents about 3 per cent of total spending by foreign visitors while in new zealand, meaning it is unlikely to have a significant impact on arrivals.

but industry insiders say that rather than raising taxes, new zealand should look for ways to improve the country's competitiveness as a tourist destination. thailand in june abolished the 300 baht tourism tax previously charged to incoming travelers and introduced more high-end tourism resources to encourage tourists to spend in other areas.

rebecca ingram, head of the new zealand tourism industry association, agreed with this, saying: "new zealand's tourism industry has not yet fully recovered from the impact of the covid-19 pandemic. raising the foreign tourist tax at this time will further reduce its competitiveness in the international tourism market."