New Zealand has implemented an International Visitor Conservation and Tourism Levy (IVL), which is a significant component of its strategy to ensure the sustainability of its natural environment and tourism infrastructure. This levy is distinct from the site-specific entry fees planned for 2027, as it applies to most international visitors upon their entry into the country.

Introduction and Purpose of the IVL

The International Visitor Conservation and Tourism Levy was initially introduced on July 1, 2019. Its primary purpose was to ensure that international visitors contribute directly to the costs associated with maintaining New Zealand’s world-renowned natural environment and developing its tourism infrastructure. Before the IVL, the vast majority of these costs were borne by New Zealand taxpayers and ratepayers.

The IVL was established in response to a significant increase in international visitor numbers, which, while beneficial for the economy, also placed considerable pressure on the country’s infrastructure, communities, and sensitive ecosystems. The levy aims to provide a dedicated funding stream to mitigate these impacts and support the long-term health of both the tourism sector and the conservation estate.

The Recent Increase in the IVL

The initial IVL amount was NZ35.However,theNewZealandgovernmentannouncedasignificantincrease,raisingthelevyto∗∗NZ100**, effective from October 1, 2024. This change followed a public consultation process where a large majority of submitters (93%) supported raising the levy, primarily to better cover the costs of tourism.

The government’s rationale for this substantial increase was to further ensure that international visitors contribute a fair share towards the public services and high-quality experiences they enjoy in New Zealand. While the increase is significant, the government argues that a NZ$100 IVL generally makes up less than 3% of an international visitor’s total spending in New Zealand, suggesting it is unlikely to have a major impact on overall visitor numbers. They also highlight that the new IVL remains competitive when compared to similar charges in other popular tourist destinations like Australia and the UK.

What the IVL Funds

The revenue generated from the IVL is specifically earmarked for investment in both conservation and tourism projects across New Zealand. This ensures that visitors’ contributions directly benefit the very aspects of the country they come to experience. The funds are used for:

  • Conservation Efforts: A substantial portion of the IVL is allocated to protecting New Zealand’s unique biodiversity, including funding for predator control, invasive plant species removal, and the protection of critically endangered species in national parks. This helps maintain the pristine natural landscapes that are a primary draw for tourists.
  • Tourism Infrastructure: The levy also supports the development and maintenance of essential tourism infrastructure. This includes improving tracks, huts, public toilets, and other facilities that enhance the visitor experience. It also helps local communities cope with the increased pressure on regional infrastructure, such as roads and public transport.
  • Biodiversity Protection: Funds are invested in projects that directly support biodiversity within national parks and other highly visited areas, ensuring that the natural beauty and ecological health of these sites are preserved for future generations.

In essence, the IVL is designed to be a direct contribution from international visitors towards safeguarding New Zealand’s natural heritage and ensuring the continued provision of high-quality visitor experiences.

Who Pays the IVL and Who is Exempt

Most international visitors applying for a visa or a New Zealand Electronic Travel Authority (NZeTA) to enter New Zealand are required to pay the non-refundable NZ$100 IVL. This includes individuals coming for holidays, working holidays, and those on some student and short-term work visas.

However, several categories of travelers are exempt from paying the IVL:

  • New Zealand citizens and residents (including all resident visa holders).
  • Australian citizens and permanent residents.
  • People transiting New Zealand on a transit visa or transit NZeTA.
  • Individuals from specific Pacific Island countries (e.g., Cook Islands, Fiji, Samoa, Tonga, Vanuatu, among others).
  • Diplomatic, military, medical, and humanitarian visa holders.
  • People traveling to Antarctica under the Antarctic Treaty.
  • Recognized Seasonal Employment workers.
  • Business Visitor Visa holders (including APEC business travel cards).
  • Ship and airline crew.
  • Most dependents (partners and children) of work and student visa holders.
  • Travelers whose visa or NZeTA requirements have been waived by Immigration New Zealand.

The IVL is typically paid at the same time a traveler applies for their NZeTA or visa.

Impact and Industry Response

While the government maintains that the IVL increase is necessary and will not significantly deter visitors, some in the tourism industry have voiced concerns. Organizations like the International Air Transport Association (IATA) and Tourism Industry Aotearoa (TIA) have expressed disappointment, arguing that the increased costs (including the IVL and recent increases in visitor visa fees) could make New Zealand an “incredibly expensive” destination and potentially hinder the sector’s recovery to pre-pandemic visitor levels. They emphasize the importance of airline connectivity for a country at the “bottom of the world” and advocate for transparent and meaningful investment plans for the collected funds.

Despite these concerns, the government remains confident that the IVL will play a crucial role in ensuring the long-term sustainability and quality of New Zealand’s tourism offering, allowing visitors to continue enjoying its unique natural beauty for years to come.