New Zealand to tax tourists to fund infrastructure

AFP  |  Wellington 

announced plans today to introduce a tourist and increase other fees for international visitors to fund infrastructure development in the face of a tourist boom.

Tourism numbers in the country of 4.5 million have surged by nearly a third in the past three years to 3.8 million in the year to April.

"This rapid growth has impacted on the costs and availability of publicly-provided infrastructure," said.

"Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to carparks." A of NZ$25-35 (US$17-24) would be imposed on international visitors from mid-next year while price hikes for immigration fees and visas will take effect this November.

Australians and most forum countries will be exempt from the new charges.

Tourism is a key pillar of the economy and the new is expected to raise up to NZ$80 million in its first year, which will be split between and conservation initiatives.

The main opposition claimed the new tax system would make a "less attractive" destination.

But Davis believed the impact on tourist numbers would be minimal.

"When you're talking about the additional cost to, say, someone coming from the who are already paying about NZ$1,200, an extra NZ$25-NZ$30 isn't going to make that much of a difference," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 15 2018. 11:25 IST