Tourist tax to be introduced by New Zealand

Tourists traveling to and from New Zealand will pay a new tax that might decrease the country's tourism influx

Due to the new tax, it is expected that New Zealand visitors number will drop by 34.000 for each year. Also, exports and overall economy might be affected by the new charge.

Kirdan Lees, economist for the New Zealand Institute of Economic Research (NZIER) commented:

“Right now tourism is booming, bringing in new export dollars and a chunky boost to GST (goods and services tax) revenues just when our dairy sector is taking a hit.

A border charge would simply discourage much of the behavior we want to encourage – tourists to visit and spend money in New Zealand.”

Lees also believes that border control costs should be founded by other taxes, with less economic impact on the country and less effect on the already growing tourism industry.

The tax will take effect starting January 1^st and was created to fund New Zealand’s bio-security operations (for the protection of the country's agriculture, horticulture, flora and fauna).

The levy will sum a total of NZ$21.57 for air travelers and NZ$26.22 for cruise passengers, as international transit is forecast to increase from 10.1 million last year to 13.3 million by 2018-2019.

Nevertheless, military workers, children under two years of age, crew and transit passengers as well as travelers who fully paid their ticket before January 1st will be exempt from paying the tax.