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Tourism Industry Aotearoa has expressed deep disappointment with the increases in immigration fees for Visitor Visas and Working Holiday Visas announced on Friday.
These fee changes come at a time when the tourism industry is striving to recover, and the Government risks undermining New Zealand’s appeal as a destination.
“The substantial increases in visa fees are a blow for our industry,” says TIA chief executive Rebecca Ingram.
“These additional costs will create a barrier that will deter visitors from choosing New Zealand.”
The new fee structure will see the cost of a Visitor Visa rise by $130 to $341pp (61 per cent increase) and a Working Holiday Visa rise by $250 to $670pp (59 per cent increase).
Coupled with the potential increase to the International Visitor Levy, this will significantly elevate the cost to visitors and affect demand.
“We are particularly concerned about the cumulative effect of these fees, which we believe will have a material impact on visitor numbers, a vital workforce and the economic contributions they bring,” Rebecca says.
“We urge the Government to factor in 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.”
A summary of TIA’s submission to Immigration New Zealand during the closed consultation is:
Impact on Tourism Demand: Significant increases in visa fees and levies for tourism-related categories could lead to a notable drop in visitor numbers, potentially reducing international visitor arrivals by up to 24,500 and risking $120 million in visitor expenditure.
Cumulative Cost Concerns: The combined costs of various fees and levies for visitors are rising significantly which will be a barrier for visitors to enter New Zealand. All visitor costs, including the International Visitor Levy, must be considered.
Alignment of Fees and Services: We advocated for a connection between the proposed levy increases and the actual costs incurred by the immigration system.
Economic Contributions of Tourism: International visitors contribute substantially to New Zealand’s economy, generating $7.3 billion in government revenue pre-COVID, including $3.8b 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, especially in the tourism industry, with 37 per cent of businesses hiring them over the summer. Increased visa costs could deter these essential workers.
Implementation Timing: The tourism sector operates on long lead times, and sudden and significant increases in visa costs in 2024 could disrupt inbound travel operators’ pricing and planning, negatively impacting the industry.
