15 Jun 2018

Mayor: $35 tourist tax not enough to cover need

6:35 pm on 15 June 2018

It's the right of the government to sting tourists for more at the border, as long as the money raised goes where it's needed, the tourism industry says.

Campervan on Mount Cook Road with Mount Cook and Lake Pukaki, Mount Cook National Park, UNESCO World Heritage Site, Canterbury, South Island, New Zealand.

Photo: AFP

Tourism is a multi-billion-dollar boon for New Zealand but the government says visitors coming here should be paying more - up to $35 more - to visit.

Labour campaigned on an international visitor levy to raise money to spend on tourism infrastructure to pay for amenities in hotspots around the country.

As RNZ reported a few weeks ago, Australians and several Pacific Island countries would be exempt.

Of the 3.7 million visitors in 2017, nearly 1.5 million were from Australia. Add to that Pacific Island visitors and that is a big chunk who will not be paying.

This morning, Tourism Minister Kelvin Davis unveiled new details about the tourist tax, and also about a new online authority some travellers will have to obtain before they're allowed into New Zealand.

In 2017, tourism was worth more than $14 billion to the economy, and demand shows no signing of abating with just over 5 million visitors a year expected by 2024.

Mr Davis said tourism infrastructure was "creaking" and visitors should have to contribute to the cost of building and maintaining that infrastructure.

He has been advised the effect on tourism numbers would be "minimal".

"If there's a couple of thousand fewer, we're still going to collect in the vicinity of $60 million to $80 million", Mr Davis said.

Souther Cross above Church of the Good Shepherd

Church of the Good Shepherd at Lake Tekapo in Mackenzie District. Photo: Fraser Gunn

Mackenzie District mayor Graham Smith said the proposed new tax was totally inadequate.

"We are committed to giving our tourists a great experience here ... but it needs to be funded, and our tourists need to fund it."

Canadian tourists Paul and Darlene were having a coffee break in Murchison when RNZ spoke with them this morning.

The Ontario couple said they would not be put off by a tourist tax.

Darlene said that was just part of visiting a foreign country.

Her husband Paul agreed, but would like to see Commonwealth countries united on waiving the entry tax.

"We've travelled a fair number of places in the world and many have visa charges to get into the country, but most Commonwealth countries don't."

The highway from Murchison.

The highway near Murchison. Photo: RNZ/Tracy Neal.

Money raised from the tax would also go towards conservation.

Conservation Minister Eugenie Sage said more was needed for the upkeep of Department of Conservation huts and tracks and other amenities.

"Rangers at Punakaiki, Pancake Rocks on the West Coast, one of those rangers spends most of his day cleaning the toilets because of the increased visitation there."

The tax would be paid through the existing visa system so anyone paying for a visa to come to New Zealand would pay the tax at the same time.

People coming from countries that do not need a visa would have to use a new Electronic Travel Authority system.

As well as a way to pay the tax, the ETA would also be used to screen passengers.

Paul Stocks from the Ministry for Business, Innovation and Employment said there would be an online application asking for personal details including criminal records.

"At the moment if you're from a visa waiver country, essentially when you turn up at the airport your name goes into the system ... and that's the first advanced passenger information.

"Under the new process you'll log into a website, you'll say you want to come to New Zealand, we know you're coming and if you're somebody we don't want you won't be coming, and at that point you'll also pay your IVL [international visitor levy]."

Tourism Industry Aotearoa head Chris Roberts said tourists already contributed generously to the economy.

But it was the government's prerogative to impose a new tax, he said.

Most short-haul passengers would not be hit, and it should not deter those paying for more expensive tickets, Mr Roberts said.

"The key is to make sure the money goes to where it's really needed."

National tourism spokesperson Todd McClay said the government had big surpluses and did not need to tax visitors to spend more money on tourism.

If it became too expensive, he said, tourists had plenty of other choices around the world.

The government plans to have the new tax in place by the second half of next year, following a period of public consultation.

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