New Zealand’s proposed tourist tax could have a counterproductive effect, according to a new government report.
A new levy of $25 to $35 for tourists visiting New Zealand may be imposed by the middle of 2019 and will raise up to $80m a year.
However much of that could be wiped out with a projected drop in tourist numbers due to the tax, a paper from the Ministry of Business, Innovation, and Employment says.
The ministry analysis based its findings on the impact of a $25 tourist levy and planned $9 ETA visa fee.
"Our estimates of the possible impacts in 2021, relative to the MBIE forecast for that year, are 14,983 fewer visitors, $51 million reduced spending by visitors while in New Zealand, and a $42 million smaller contribution to GDP by the tourism sector," it said.
The paper said stakeholder feedback generally supported the levy, but noted concerns from the tourism and airline industries.
The NZ government hopes to finalise the fee and its mechanism by March 2019, however its implementation could be pushed back to 2021.
The tourist levy would be used for improving tourism infrastructure and conservation, tourism minister Kelvin Davis said.
Australians would be exempt from the visitor fee.
Another government report was published last week outlining changes to many immigration fees.
These include a 10% increase in the working holiday visa fee.
