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New Zealand triples tourist tax for foreign visitors

New Zealand is significantly hiking its tourist tax next week, increasing pre-departure costs for a family of four visiting the land of the long white cloud to over S$370.

Act now to secure a two-year entry at the existing rate!

If New Zealand is on your radar for an upcoming overseas trip then there’s some bad news to report, with the country significantly hiking its International Visitor Conservation and Tourism Levy (IVL), which will increase the cost of a trip for a family of four to over S$370, before you have even left home!

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The change, which takes effect early next week on 1st October 2024, will see the IVL increase in cost from NZ$35 (around S$28) to NZ$100 (around S$81), “to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand”.

Although the levy is intended to fund sustainable tourism and conservation initiatives, this significant 186% increase could deter many international travellers, especially families, since the fee is applied per person.

First introduced in 2019, the IVL aims “to help mitigate the conservation and tourism costs associated with international visitation and ensure this cost is not unduly borne by New Zealanders”, according to the New Zealand Government.

The fee has been set at NZ$35 since its introduction, but the upcoming increase to NZ$100 represents a nearly threefold hike, which has drawn negative reactions from both tourists and the travel industry.

The IVL is charged for most:

  • NZeTAs
  • Visitor visas (excluding partner and dependent categories)
  • Student visas (excluding dependent child category)
  • Student and Trainee Work visas
  • Specific Purpose Work visas
  • Working Holiday and Work Exchange schemes
It’s going to get a lot more expensive to visit New Zealand.
(Photo: Aneta Foubikova)

Unsurprisingly, the significant hike in the cost of the IVL has gone down badly within the tourism and aviation sectors.

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Tourism Industry Aotearoa has said the decision will make New Zealand “incredibly expensive to visit”.

“New Zealand’s tourism recovery is falling behind the rest of the world, and this will further dent our global competitiveness”, said TIA Chief Executive Rebecca Ingram earlier this month, adding “airline connectivity isn’t a nice to have for a country at the bottom of the world – it’s essential”.

The International Air Transport Association (IATA) says that post-COVID recovery of the aviation sector in New Zealand currently lags behind major markets such as Australia, Canada, France, Spain, the UK, and the USA, all of which have either recovered to pre-pandemic passenger levels, or will achieve full recovery in 2024.

Visitor totals in New Zealand are still at only around 80% of pre-COVID levels.

The IATA warns that this significant increase to the IVL “could further delay the recovery in visitor numbers to beyond 2026”.

Most of our readers will have (or need) an NZeTA before travelling to New Zealand, which requires payment of both the IVL tax and an application fee.

This varies based on whether you apply online or via the mobile app (Apple | Google), as shown below.

New Zealand Tourism Taxes
Charge Via
Mobile App
Via
Online Form
Application Fee NZ$17 NZ$23
IVL Tax NZ$35
NZ$100
NZ$35
NZ$100
Total NZ$52
NZ$117
NZ$58
NZ$123

As you can see, that currently means paying at least NZ$52 for an NZeTA including the IVL as a tourist visitor every two years, a fee that will increase to at least NZ$117 (around S$95) from 1st October 2024.

For a family of four, that’s a whopping NZ$468 (around S$380), instead of NZ$208 (around S$169) today, a significant cost particularly if you’re only planning a single trip to New Zealand, rather than taking advantage of multiple entries over a two-year period.

Indeed this additional cost, on top of flights, accommodation, and other travel expenses, may deter some families from visiting the country altogether.

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By comparison, Singaporeans can visit Australia with an ETA for AU$20 (~S$18), while an ESTA to travel to the USA costs US$21 (~S$27) per two years, and the UK’s upcoming ETA will cost GBP10 (~S$17) for two years.

Even when Europe implements its ETIAS system in 2025, the pre-departure cost for tourists will be only EUR7 (~S$10) for unlimited entries over three years.

Despite New Zealand’s fee effectively increasing to NZ$117 (~S$95) per person next week, the country’s Minister for Tourism and Hospitality Matt Doocey states that “the new IVL remains competitive with countries like Australia and the UK”.

Mr Doocey also claimed that the hiked NZ$100 levy would make up “less than three per cent” of the money spent by an international visitor to New Zealand.

If you’re not currently holding an NZeTA and you’re planning to travel to New Zealand in the next two years, it makes a lot of sense to apply for the entry approval now and pay the lower NZ$35 per person IVL charge.

You have until the end of this coming Monday (30th September 2024) to do so, which would then permit unlimited entries until 30th September 2026.

To take advantage, be sure to apply and pay by 6.49pm Singapore Time on Monday 30th September 2024 (11.59pm New Zealand Time).

Once you apply from 1st October 2024 onwards, the new increased fee applies and for families that’s a huge dent in your wallet before you’ve even looked at flights and hotel options!

The NZeTA is valid for two years, so if you’re currently holding one having already paid the current IVL rate of NZ$35, then provided you arrive in New Zealand on or before the expiry date you can continue to use this NZeTA without additional payment.

Only new NZeTAs that require an IVL payment issued from 1st October 2024 onwards will have to pay the new per-person rate of NZ$100.

For most countries with an ETA system, your entry approval is only valid for its stated duration or until your passport expires, whichever comes sooner.

Thankfully New Zealand does not do this.

I have a current NZeTA valid until late 2025, and am planning a New Zealand trip next year, but I now have a new passport to the one my current approval is tied to.

It is possible to update your passport details and continue to use an existing NZeTA within its validity date, when your passport has been replaced due to expiry, loss, theft or name change.

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I just recently went through this process by providing my new passport details, and my new entry approval reflected in the NZeTA app around a day later.

This allows continued entry until its original expiry date in late 2025, with no additional fee payable (luckily, I paid only NZ$35 for the IVL with this ETA, in late 2023).

You can only use the online service to update passports that are from the same issuing state as the original ETA. If you have changed nationality, you must get (and pay for) a new NZeTA.

You will have to scan your new passport in the NZeTA app to see the new entry approval reflected.

Those entering New Zealand with an approved APEC Business Travel Card (ABTC) do not need an NZeTA and are except from payment of the IVL.

However, do note that entry with an APEC card is for business travel only, not for holidays or tourism, so if you’re travelling for these reasons you’ll still need an NZeTA and you’ll still need to make payment of NZ$100 for the IVL prior to travel, for new NZeTAs issued from 1st October 2024.

When you travel to New Zealand for business purposes with an APEC card, you are considered to hold a visa for New Zealand. You are exempt from holding an NZeTA.

Travelling for other purposes (such as tourism), requires an NZeTA or visitor visa.

APEC cards can only be used for business purposes and cannot be used as a holiday, private, recreational or sporting visa purpose.

New Zealand Government

Not everyone entering New Zealand is required to pay the IVL.

Exemptions apply to travellers with New Zealand or Australian passports, passports from many Pacific Island nations, transit passengers, and holders of New Zealand or Australian resident visas.

Singapore Airlines currently serves New Zealand 14 times weekly, with daily flights to both Auckland and Christchurch from its Changi hub using Airbus A350 Long Haul aircraft.

For the upcoming northern winter season from late October 2024 to late March 2025, which represents the peak summer months in the land of the long white cloud, these flights will be hiked significantly to:

  • Auckland: Up to 21 flights per week (14 Airbus A350 LH, 7 Boeing 777-300ER)
  • Christchurch: Up to 10 flights per week (Airbus A350 LH)
Singapore Airlines will operate four-class Boeing 777-300ER aircraft on its Auckland route this coming season.
(Photo: Plane’s Portrait Aviation Media / Malcolm Lu)

Here’s how the KrisFlyer miles award rates look on these routes, including for First Class on the Boeing 777-300ER.

KrisFlyer Redemption Rates
Singapore ⇆ New Zealand
  Saver Advantage
Economy 30,500 55,000
Premium Economy 51,000 n/a
Business 68,500 90,000
First 93,500 155,000

In addition to a significant hike in its tourism tax prior to departure, New Zealand also levies arrival charges in addition to mandatory airport taxes on top of your miles redemption, in the form of the New Zealand Border Clearance Levy and the New Zealand Passenger Service Charge for International Arrivals.

Thankfully these are not too extortionate, like aviation taxes in some other countries like the UK, but they are still worth bearing in mind.

It means in addition to your miles outlay, you’ll typically fork out around S$110-S$120 in cash from Singapore to New Zealand, but thankfully only S$33-S$40 in the return direction from New Zealand to Singapore.



 


 

Summary

The cost of travelling to New Zealand will be significantly hiked from next week, with the country almost tripling its International Visitor Conservation and Tourism Levy (IVL) from NZ$35 to NZ$100 – meaning a minimum outlay of NZ$117 (~S$95) per person, when the application fee is also considered.

Thankfully those who have already paid the IVL in the last two years can continue to enter New Zealand until their NZeTA expires, even if they obtain a new passport in the meantime, like I have recently done.

Crucially, there’s also the opportunity to obtain a new NZeTA one over the next 24 hours at the existing lower rate, before the fee hike kicks in – so do consider this if you’ll definitely visit New Zealand over the next two years.

While individual travellers may absorb the new hiked cost more easily, for larger families the increase is significant, and may sadly lead some to reconsider New Zealand as a holiday destination.

(Cover Photo: MainlyMiles)

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2 comments

    1. Oh yes there is! Apologies – I didn’t realise Singaporeans need to pay for that one. A rare example where my passport does better than yours – it’s free for me.

      Article updated, thanks.

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