Matt Doocey: Tourism Minister defends International Visitor Conservation and Tourism Levy hike

The Tourism Minister says the extra money from increased overseas visitor fees will be funnelled back into the industry.

The International Visitor Conservation and Tourism Levy rises next month from $35 to $100 next month.

Matt Doocey says $100 is less than three percent of a visitor's total spend.

"Ultimately, this levy will be reinvested into both tourism pressures - but also, the conservation estates, which a large part of people travel to New Zealand for. So we'll be delivering a better product."

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Episode Transcript

Speaker 1 (00:00):
Afternoon. International tourists will have to pay one hundred bucks
to enter the country from next month. The government's announced today.
It is more than tripling the international visitor levee, which
was previously thirty five dollars. The tourism industry is really
disappointed by the move. And Matt Doosey is the Minister
for Tourism and Hospitality Hammatt Hi Heather mad are you
sure this is a good idea.

Speaker 2 (00:20):
Yeah. We want to grow the value of international tourism.
We want to support conservation. We've heard loud and clear
from the public consultation ninety three percent of over eleven
hundred submitters wanted the international visitor levy to increase, and
two thirds of them wanted it to increase to one
hundred dollars. When you think about that one hundred dollars,

(00:43):
that is only around two percent of what an international
tourists will spend on their trip. It's comparative to Australia
and the United Kingdom. And we want to support tourism
and conservation through this levee.

Speaker 1 (00:57):
And so what about when you because you guys have
just put up the visit of visit a visa cost
as well when you chuck that together, where do we
sit in terms of where other countries we compare ourselves to.

Speaker 2 (01:07):
Well, when you look at the international visitor levy, around
sixty percent of international tourists pay that Australia and Pacific
Island visitors.

Speaker 1 (01:17):
Yeah, but that's not what I'm asking you. So what
I'm saying is, just last month you pot up the
visitor visa costs as well, Right, So chuck the two
of them together, the visit of visa costs plus the
IVL and how competitive are we now internationally?

Speaker 2 (01:29):
Well, when you look at the increase of Eric Stanford,
the Immigration Minister's visitor visas, that was for US smaller
group of countries because most countries visiting New Zealand are
visa waiver. What we want to do is shift some
of the costs from the taxpayer to the tourists. When
you look at the advice that I've received, there is

(01:51):
no evidence that the increase will significantly impact on tourism numbers.
In fact, I'm around the country most weeks either and
most torus operators are telling me that they're getting a
higher yield from their product and they're actually delivering a
higher quality experience. So we want to grow tourism. The
government's got an ambitious target to double exports. Tourism is

(02:12):
a big part of that, and I want to grow
the value of international tourism with social license.

Speaker 1 (02:17):
So it looks to me like, if you're paying the
IVL plus the visitor visa, right, and you've got a
family of five, you're paying twenty two hundred bucks before
you even land in the country. Would Canada charge it,
would Australia charge it? Or is it just us?

Speaker 2 (02:30):
Well, there is a range of prices that people pay
when they travel to a range of countries. Ultimately people
will make that choice. We are a premium destination.

Speaker 1 (02:40):
Increasing but at least so. And this is why what
I'm trying to get to Matt, is that we are
losing our attractiveness. According to Forsyth, bar as a destination right.
So if increasingly people do not really want to come here,
is it the right thing to do to make it
more expensive.

Speaker 2 (02:55):
Well, I would disagree with that assumption in the framing.
No evidence that the officials provided show there would be
a significant impact on tourism numbers. And like I say,
when I talk to the tourism operators, they are telling
me that they are getting a high yielding product. We
want to grow international tourism. I've set tourism what an

(03:18):
ambitious target of growing by five billion dollars over the
next form.

Speaker 1 (03:22):
Tell me what is our internet, What is our recovery
looking like post COVID? Where are we sitting in terms
of tourism in terms of where we were pre COVID.

Speaker 2 (03:30):
When you look at tourism numbers, we're at around eighty
two percent.

Speaker 1 (03:35):
Okay, And where's Australia.

Speaker 2 (03:37):
Are They're about eighty four or eighty five percent and
they will be.

Speaker 1 (03:41):
Fully recovered by the end of the year. When are
we fully recovered?

Speaker 2 (03:44):
But what we're seeing heather when you go around the country.
If you look at the hawks, baos and recently, when
you look at the value of international tourism, they're forty
percent above twenty nineteen levels. West coast of the South
Island they're about fifteen.

Speaker 1 (04:00):
Are you saying the people coming over now we have
fewer of them, but they're spending more.

Speaker 2 (04:04):
That's right. That's why tourism operators are saying they're having
a higher yield from their product and delivering a higher
quality product as well. We are seeing a lot of
growth coming out of the Chinese market. I think the
figures I saw in the last twelve months because they
were slow to return. It's increased by three hundred and
forty percent. And what we're also seeing is less of

(04:26):
the low value bus travelers, more of the higher value
independent Chinese market, which our tourism operators are responding to.
And that's why I say that ultimately this levy will
be reinvested into both tourism pressures but also the conservation
estates which a large part of people travel to New

(04:48):
Zealand four, so we'll be delivering a better product.

Speaker 1 (04:51):
Matt, thank you for you to I'm really appreciated. That's
Matt Doocy, Minister for Tourism and Hospitality.

Speaker 2 (04:56):
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