Foreign visitors to New Zealand will face a significant increase in the International Visitor Conservation and Tourism Levy (IVL), with the fee rising from NZ$35 to NZ$100 from October 1.

The New Zealand government has confirmed that travelers holding Australian and New Zealand passports will be exempt from this fee.

Tourism and Hospitality Minister Matt Doocey stated that the NZ$100 International Visitor Conservation and Tourism Levy (IVL) would typically account for less than three percent of an international traveler’s overall spending in New Zealand. He believed this increase is unlikely to impact visitor numbers.

Before the COVID-19 pandemic, tourism was New Zealand’s leading export sector, surpassing dairy exports. However, the industry has encountered challenges in its recovery, including limited airline capacity and delays in welcoming travelers back from the vital Chinese market.

Despite these hurdles, tourism continues to be a major economic driver, contributing over NZ$13 billion (approximately $8 billion) annually and attracting around 3.2 million international visitors in the year ending in June.

The Tourism Industry Aotearoa (TIA) reported that the increase in the International Visitor Conservation and Tourism Levy (IVL), combined with a recent 60 percent rise in visitor visa fees, could raise the overall cost of visiting New Zealand to as much as NZ$500 (approximately $310) per person. This would be more than double the expense of visiting Canada and about two-thirds more than a trip to Australia.

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TIA CEO Rebecca Ingram warned that raising the IVL to NZ$100 could negatively impact the tourism sector, potentially resulting in a loss of 48,000 visitors and a decrease in visitor spending of NZ$273 million.

Additionally, the International Air Transport Association (IATA) expressed its disappointment, calling the fee increase a double whammy for the industry.