From 1st October 2024the New Zealand will implement a significant increase in its International Visitor Conservation and Tourism Levy (IVL)from NZD 35 to NZD 100. The aim of this measure is to support the development of a sustainable tourism by funding initiatives to preserve the environment and improve tourism infrastructure. This increase in the VILT affects most international visitors entering the country for less than 12 months.
From 1 October 2024, the New Zealand government will be implementing a significant increase in the tax. International Visitor Conservation and Tourism Levy (IVL)which will increase from NZD 35 to NZD 100. This reform is designed to support the development of sustainable tourism and address the growing environmental impact of tourism in the country.
Originally introduced to fund conservation and tourism infrastructure initiatives, the VILT was designed to ensure that international visitors contribute to resource conservation and community well-being. With this increase, travellers will now have to pay NZD 100 (around €56) when they enter New Zealand, an amount that the authorities say represents an insignificant proportion of the total cost of their stay.
Objectives of the VILI increase
The main objective of this increase is to support the development of a sustainable tourism. The funds generated by this tax will be allocated to environmental conservation and the improvement of tourism infrastructure throughout New Zealand. The operation aims to minimise the impact of tourism on the environment and support local communities.
Support for the environment and infrastructure
The Minister for Tourism and the Hotel Industry, Matt Dooceyand the Minister for Conservation, Tama PotakaIn their response, the Australian government and the World Tourism Organisation (WTTO) emphasised that this increase in the VIF would enable the effects of tourism to be managed more effectively. As a result, a VIF of NZD 100 would represent only a fraction of visitor spending, contributing to sustainability without deterring tourists from visiting the country.
"A VIF of 100 $ generally represents less than 3 % of an international visitor's total expenditure during their stay in New Zealand.
Impact on electronic travel costs
To obtain theelectronic travel authorisation (NZeTA)In addition, a traveller will also have to pay an additional fee. From the effective date of the increase, the cost of applying via the mobile app will increase to NZD 117 (approx. €65) and to NZD 123 (approx. €69) for online applications. This represents a significant increase on the current fees.
Exceptions to the VIL
Despite the increase in tax, certain people will be exempt from IVL. This exemption applies in particular to :
- Australian nationals
- Australian permanent residents
- nationals of Pacific Islands Forum countries (with the exception of New Caledonia and French Polynesia)
- holders of diplomatic, military, medical and humanitarian visas
Impact on different types of visa
The various types of visaThis will also affect other types of visa, such as the Working Holiday Visa (WHV) and the Student Visa. The total cost of the PVT will increase from NZD 705 to NZD 770, which includes the visa fee and the IVL. Foreign students staying for less than 12 months will also have to pay this tax during their stay.
International comparison of taxes
New Zealand is not the only destination to introduce tourist taxes. Countries such as Japan (1,000 yen), Bali (150,000 Indonesian rupees) and cities such as Venice (3 to 10 euros depending on the season) also apply similar taxes, underlining a global trend towards better management of tourism resources.
Planned use of additional funds
The New Zealand government has drawn up a detailed plan for the use of the additional revenue generated by the increase in the VIF. Foreseeable areas of investment include:
| Investment area | Percentage allocated | Estimated amount (in millions of NZD) |
|---|---|---|
| Biodiversity conservation | 35% | 70 |
| Tourist infrastructure | 30% | 60 |
| Waste management and recycling | 15% | 30 |
| Tourism training and education | 10% | 20 |
| Research and innovation | 10% | 20 |
This increase is expected to generate nearly US$200 million a year, making it easier to finance projects related to conservation and sustainable tourism.
Expressions of concern have been voiced by leaders in the travel sector, such as the Dr Xie XingquanIATA's Regional Vice President for Asia, who warned that the increases could harm New Zealand's competitiveness as a tourist destination.
For more information on NZeTA and other details on travel regulations, please visit this link.
Comparison of IVL taxes before and after the increase
| Element | Details |
|---|---|
| Current amount of IVL | 35 NZD |
| Amount of IVL after increase | 100 NZD |
| Date of entry into force | 1st October 2024 |
| Objective of the increase | Financing sustainable tourism and preserving the environment |
| Estimated number of annual visitors | Approximately 3.5 million |
| Estimated additional income | NZD 200 million per year |
| Impact on NZeTA costs | Increase of NZD 117 for the mobile application |
| Exemptions from VIF | Australian and Pacific nationals |
| Impact on the price of the WHP | Increase from NZD 705 to NZD 770 |
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