Ryan Bridge: Don't we want higher spending, higher yield tourists coming here?

I have zero issues with foreign visitors paying more to visit New Zealand. The tax hike that is being touted is big – $35 up to $100 per visitor, and that is substantial. 

Crucially though, our Aussie mates are exempt, and they make up 40% of our market. So that's a good chunk who won't be contributing and shouldn't be affected in terms of numbers visiting us here. 

The impact, the overall impact still quite unclear. 

The Government on one hand says they've got MBIE advice, which is always good advice, saying that it won't be a significant impact. The industry says we will have 48,000 fewer visitors coming here and they'll take their almost $300 million spend elsewhere. The industry says this is alarming. 

It's possible they're both right here. The total tourist numbers visiting in the year to June is 3.2 million. So, 48,000 is both not significant if you're the Government, but alarming if you're the industry. 

The cold, hard reality is we're not as hot as we used to be when it comes to New Zealand as a destination, not as sexy, you could say. 

Post-Covid, our recovery has stalled. I think we're at about 73% of pre-Covid levels in terms of visitors. 

Largely, this is about cost. It’s not because our mountains are any less beautiful, our lakes less attractive, it’s largely about the cost of getting here. 

But those issues, you know, the plane supply, the routes, et cetera, should subside. And when that happens, don't we want the extra money to maintain our walking tracks and to give the Germans somewhere to go to the loo? 

I would have thought so. 

And if it's going to put anyone off, wouldn't it be the low spending, high infrastructure using smelly backpacker variety? Of which I have been one, I'm not disparaging them, and, well, I suppose I am disparaging them a little, disparaging myself. 

But don't we want sort of higher spending, higher yield tourists coming here? Using less of the country and less of its resources and infrastructure but spending more? 

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Episode Transcript

Speaker 1 (00:00):
I have zero issues with foreign visitors paying more to
visit New Zealand. The tax hike that is being touted
is big, thirty five dollars up to one hundred dollars
per visitor. That is substantial. Crucially, though, our Aussie mates
are exempt and they make up forty percent of our market,
so that's a good chunk who won't be contributing, so

(00:21):
shouldn't be affected in terms of numbers visiting us here.
The impact overall impact still quite unclear. The government, on
one hand says they've got MB advice, which is always
good advice, saying that it won't be a significant impact.
The industry says, we will have forty eight thousand fewer
visitors coming here and they'll take their almost three hundred

(00:43):
million dollars spend elsewhere, thank you very much. The industry
says this is alarming. It's possible. They're both right here.
The total tourist numbers visiting in the year to June
three point two million, so forty eight thousand is both
not significant if you're the government, but alarming if you're
the industry. The cold, hard reality is we're not as

(01:06):
hot as we used to be. When it comes to
a New Zealand as a destination, not as sexy, you
could say. Post COVID, our recovery has stalled. I think
we're at about seventy three percent of pre COVID levels
in terms of visitors. Largely this is about costs, not
because our mountains are any less beautiful, our lakes less attractive.
Largely about the cost of getting here. But those issues,

(01:28):
you know, the plane supply, the roots, etc. Should subside.
And when that happens, don't we want the extra money
to maintain our walking tracks and to give the Germans
somewhere to go to the loop? I would have thought so.
And if it's going to put anyone off, wouldn't it
be the low spending, high infrastructure, using smelly backpack of

(01:48):
variety of which I have been one, of which I
have been one. I'm not disparaging them. Well, I suppose
I am a little disparaging myself. But don't you want
sort of higher spending, higher yield tourists coming here using
less of the country and less of its resources and infrastructure,

(02:11):
but spending more. For more from News Talks B listen
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