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Budget 2025, released on Thursday this week, has a strong focus on growing the economy – including tourism.
Budget 2025 includes initiatives to grow tourism by investing international visitor fees into tourism and conservation upgrades in popular areas.
“Budget 2025 is about growing the economy to create jobs and help Kiwis get ahead,” Prime Minister Christopher Luxon says.
“We cannot take an economic recovery for granted. It requires careful management.
“That’s why Budget 2025 is firmly focused on growing the economy to help Kiwis get ahead.
“[Some of the] growth initiatives include lifting KiwiSaver balances with higher employer and employee contributions, investment in new infrastructure such as roads, schools and hospitals, growing tourism, attracting foreign investment, and new support for start-up tech businesses,” says Prime Minister Luxon.
Budget 2025 says tourism-related spending in the hospitality, accommodation and recreation sectors has supported the economy recently as tourist arrivals pick up.
Visitor arrivals are now at around 85 per cent of pre-COVID-19 levels, with Chinese arrivals the slowest of the major tourist markets to return to pre-COVID-19 volumes.
New tourism spending included in Budget 2025 included pre-commitments for International Visitor Conservation and Tourism Levy Funding (IVL).
This initiative provides an increase in the Tourism Strategic Infrastructure and System Capability appropriation to fund pre-committed projects from the IVL.
This funding is in addition to the amount allocated for projects funded by the IVL in the initiative ‘International Visitor Conservation and Tourism Levy Revenue – Tourism Funding Uplift’.
The Tourism Funding Uplift initiative allocates $35 million per annum of funding for tourism-related infrastructure and systems, including capability, in accordance with an agreed International Visitor Conservation and Tourism Visitor Levy Investment Plan.
This is being managed outside Budget allowances as the IVL provides the source of funding.
New tourism-related spending also fell under the Conservation banner, with the International Visitor Conservation and Tourism Levy – Aligning Appropriations to Collected Levy Revenue initiative.
This initiative allocates additional funding over four years to the Department of Conservation for committed levy-funded projects to boost biodiversity and the tourist economy.
This funding is in addition to the amount allocated for projects funded by the IVL in the initiative ‘International Visitor Conservation and Tourism Levy – Conservation Funding Uplift’.
The International Visitor Conservation and Tourism Levy – Conservation Funding Uplift allocates $20 million per annum in additional funding to the Department of Conservation through the International Visitor Conservation and Tourism Levy, resulting from the recent rate increase to $100.
In combination with the existing $35 million in funding, this provides the Department of Conservation with a total annual investment envelope of $55 million per annum to support New Zealand’s status as a world-class destination by ensuring that our wildlife, forests and marine areas continue to be a drawcard for international visitors.
This is being managed outside Budget allowances, as the IVL provides the source of funding.
