Tourism Industry Aotearoa (TIA) is extremely disappointed by the upcoming fee hikes for immigration, particularly the significant 80% increase in visa fees for Visitor Visas and Working Holiday Visas.
Thank you for reading this post, don't forget to subscribe!“The tourism industry is starting to recover, yet these changes could make it costly to visit New Zealand, risking the country’s appeal as a destination,” says TIA CEO Rebecca Ingraham.
The industry is concerned that these substantial visa fee increases will create friction that might discourage visitors from choosing New Zealand. Starting October 1, the new pricing structure will raise the Visitor Visa application fee by $130, bringing the cost up to $341 per person (a 61% increase). The Working Holiday Visa fee will also increase by nearly 60%, rising by $250 to $670 per person. Combined with a potential rise in the International Visitor Levy, this could significantly increase costs and negatively impact demand.
Ingram expressed particular concern about the cumulative impact of these fees, noting that they could lead to a significant decline in visitor numbers, affecting both the workforce and the economic benefits they bring.
TIA Chief Executive Rebecca Ingram
TIA will host this year’s Tourism Summit Aotearoa at the Cordis Auckland on November 6, followed by the New Zealand Tourism Awards. The Hon. Matt Doocey, Minister for Tourism & Hospitality, will be the keynote speaker. “We urge the Government to consider the broader economic benefits that international visitors bring and our export earnings, rather than focusing solely on making the immigration system self-funding at the expense of our tourism sector,” said Ingram.
Summary of TIA’s Submission to Immigration New Zealand:
- Impact on Tourism Demand: Marginal increases in visa fees and levies for tourism-related categories could reduce international visitor arrivals by up to 24,500, potentially resulting in a $120 million decrease in visitor expenditure.
- Cumulative Cost Concerns: The overall cost of visiting New Zealand is rising significantly, which may deter many potential visitors. All visitor-related costs, including the International Visitor Levy, must be considered.
- Alignment of Fees and Services: TIA supported linking the proposed levy increases to the actual costs incurred by the immigration system.
- Economic Contributions of Tourism: Before COVID-19, international visitors contributed $7.3 billion annually to New Zealand’s economy, including $3.8 billion in GST. Each visitor contributes an average of $849 to crown revenue.
- Importance of Working Holiday Visas: Working Holiday visitors are crucial to New Zealand’s workforce, particularly in the tourism industry, with 37% of businesses employing them over the summer. Increased visa costs could deter these essential workers.
- Implementation Timing: The tourism industry operates on long lead times, and sudden, significant increases in visa costs in 2024 could disrupt pricing and planning for inbound travel operators, negatively impacting the sector.
- :Kimberley Dixon, August 26, 2024