IVL increase to ensure visitors contribute more to New Zealand
Introduction
The International Visitor Conservation and Tourism Levy (IVL) will be raised to $100 to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand, Minister for Tourism and Hospitality Matt Doocey and Minister of Conservation Tama Potaka say.Date: 03 September 2024 Source: Offices of the Minister of Conservation and Minister for Tourism and Hospitality
“The Government is serious about enabling the tourism sector to grow as part of our overall goal of doubling exports in 10 years. International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over $11 billion in the year ending March 2024,” Mr Doocey says.
“But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate.
“The IVL was introduced in 2019 as a mechanism to ensure international visitors were contributing directly to these costs, the vast majority of which are paid for by New Zealand taxpayers and ratepayers.”
“Public consultation by the Ministry of Business Innovation and Employment (MBIE) found 93 per cent of submitters supported raising the IVL, with the main rationale being an increase would be reasonable to help cover the costs of tourism.
“The new IVL remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world.
“A $100 IVL would generally make up less than 3 per cent of the total spending for an international visitor while in New Zealand, meaning it is unlikely to have a significant impact on visitor numbers.
“Increasing the IVL means we can continue to grow international tourism to support economic growth while ensuring international visitors contribute to high-value conservation areas and projects, such as supporting biodiversity in national parks and other highly visited areas and improving visitor experiences on public conservation land,” Mr Doocey says.
“Taxpayers already contribute close to $884 million a year directly on tourism and conservation, including tourism promotion, natural heritage and recreation. This money funds Tourism New Zealand, protects biodiversity within the Department of Conservation estate and provides quality experiences at the likes of Milford Sound, Aoraki/Mt Cook and the Tongariro Alpine Crossing,” Mr Potaka says.
Proposals for government investment to support tourism growth and conservation will be considered in due course.
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