Minister for Tourism and Hospitality Matt Doocey and Minister of Conservation Tama Potaka made the announcement yesterday, saying it would ensure visitors to New Zealand would contribute to public services and high-quality experiences while visiting the country.
Destination Queenstown chief executive Mat Woods said Queenstown had not seen any benefits from the IVL since it was established in 2019, and hoped the government would be more transparent about where the increased funding was going.
"We know that we’re a big drawcard for visitors coming to New Zealand - you would think we would have seen some benefit, but we haven’t.
"Historically, the money has been spent 50-50 between tourism and conservation, but the government hasn’t been very transparent on where it’s been spent.
"If you’re going to increase it to $100, which is in theory around $240 million, where’s it going?"
Mr Woods said Queenstown Lakes needed some of the funding to implement its destination management plans and keep up with infrastructure stresses in the area.
"Most of the infrastructure here is mixed use — it’s residential and tourism.
"It could be roading, water, waste, electric — all of these things are used by residents and tourists.
"If you look at Queenstown Lakes, it has a small ratepayer base and a lot of visitors. How do we fund that infrastructure?
"This [the IVL] sounds like it could be something that would be useful for both our destination management plans and our infrastructure."
While some in the tourism industry were concerned the increased levy would make New Zealand too expensive to visit, Mr Woods did not believe it would put tourists off because most of the country’s tourists came from Australia and they did not have to pay the IVL.
Asked if Queenstown or Dunedin would see any funding from the IVL, Mr Doocey said legally, the money had to go towards tourism and conservation, and proposals about how much would go to places like Queenstown and Dunedin would be considered "in due course".
He said the government was serious about enabling the tourism sector to grow as part of its overall goal of doubling exports in 10 years.
"International tourism plays a hugely important role in the New Zealand economy, with international visitors spending over $11 billion in the year ending March 2024.
"But international tourism also comes with costs to local communities, including additional pressure on regional infrastructure and higher upkeep and maintenance costs across our conservation estate.
"The IVL was introduced in 2019 as a mechanism to ensure international visitors were contributing directly to these costs, the vast majority of which are paid for by New Zealand taxpayers and ratepayers."
Public consultation by the Ministry of Business Innovation and Employment found 93% of submitters supported raising the IVL, with the main rationale being that it would help cover the costs of tourism.
Mr Doocey said the rise from $35 to $100 remained competitive with countries like Australia and the United Kingdom, and he was confident New Zealand would continue to be seen as an attractive tourist destination.
"A $100 IVL would generally make up less than 3% of the total spending for an international visitor while in New Zealand."
Mr Potaka said taxpayers already contributed close to $884m a year directly on tourism and conservation.
"This money funds Tourism New Zealand, protects biodiversity ... and provides quality experiences at the likes of Milford Sound, Aoraki/Mt Cook National Park and the Tongariro Alpine Crossing."
The IVL increase begins on October 1.
