In an effort to better control and balance the effects of tourism, New Zealand has increased tourist entry fees to NZD 100 in order to handle the flood of foreign visitors.

There are worries that New Zealand's planned significant hike in the tax on foreign visitors may impede the nation's already sluggish tourism revival. There will be a substantial increase in the International Visitor Conservation and Tourism Levy, which will go from NZ$35 to NZ$100. This action is a component of the government's larger plan to make sure visitors make a greater effort to preserve New Zealand's natural environment and maintain infrastructure.

The increase in levy will be accompanied by a NZ$130 increase in visa fees for those who need them, for a total increase of NZ$341, effective on the same date. The tourism sector, which is still dealing with fewer flights and sluggish passenger returns from important markets, like China, is alarmed by these price hikes.

Prior to the pandemic, tourism surpassed dairy as New Zealand's largest export industry. But the business has taken a while to bounce back; in 2023, there were only roughly three million tourists, or 75% of pre-pandemic levels. Even with these obstacles, the tourism industry nevertheless boosts the New Zealand economy by more than NZ$13 billion a year.

Tourism Industry Aotearoa (TIA) voiced apprehensions, characterizing the increased charge as a possible disincentive for tourists. The recovery of New Zealand's tourist industry is not progressing as quickly as it should, according to TIA Chief Executive Rebecca Ingram, and the increase in fees could make the nation less appealing as a holiday destination.

IATA's Xie proposed that the primary goal should be to enhance New Zealand's standing as a well-liked travel destination globally, despite the government's insistence that the new tax only makes up around 3% of a visitor's total expenditure. He used Thailand's recent decision to put plans for a tourism tax on hold as an example of how to encourage the growth of tourism.

The growth in levies coincides with the introduction of tourism taxes in other nations, including Indonesia, Spain, France, and Italy. These fees are frequently included in the price of travel, lodging, and visas. Nonetheless, business leaders are concerned that this most recent action may make it more difficult for New Zealand to draw in foreign visitors, since the nation's tourism industry is still getting over the protracted border closures brought on by the epidemic.