Auckland 03 September 2024 – Board of Airline Representatives (BARNZ) is extremely concerned to hear that the International Visitor Levy will be raised to $100. “Lifting the levy from $35 to $100 per person demonstrates the Minister of Tourism does not appreciate the impact of softening demand for destination New Zealand,” says Cath O’Brien, Executive Director of BARNZ.

“Airlines know that the outlook for inbound tourism to New Zealand is soft. As we look ahead to what should be New Zealand’s peak season, we see just 2% growth of air services to New Zealand’s international airports year on year. New Zealand’s aviation recovery is now the laggard of the Asia Pacific Region. We sit behind Australia, which saw aviation recovery to 96% in July of this year, along with a host of international destinations who have recovered to 100% of demand.”

This tells us that New Zealand is going to have to work harder to be a destination of choice for visitors. New Zealand needs to be cost competitive for airlines and visitors alike, taking a careful look at all the costs we apply, making sure they are fair, and don’t price New Zealand out of the global tourism market.

BARNZ has looked carefully at IVL proposals. IVL consultation material gave no justification for the increased costs to be charged. Quite simply, it is not clear what the increased IVL will be spent on, beyond the need to top up funding for Tourism New Zealand following further cuts in the recent budget. Consultation material provided no evidence for what funds should be spent on. The absence of a plan to spend the money suggests the IVL collection is unnecessary – which makes this increase all the more concerning. 

New Zealand is a nation famous for its manaakitanga – but our warm welcome has turned into an unjustified demand for payment at the gate. Airlines know that sharp cost increases to visas and to the IVL means those who might have visited New Zealand will travel somewhere else.  If visitor numbers reduce, tourism spend in New Zealand will follow, impacting regional business. Air connectivity will not grow, impacting consumer choice. Without air connectivity growth, New Zealand does not have capacity to double its exports. Increasing the IVL to $100 might be a short-term salve – but if visitors turn away, New Zealand will be the poorer for it.  

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For media enquiries, please contact: Cath O’Brien, Executive Director, BARNZ

M: +64 21 730 557