IATA Criticizes New Zealand’s Decision to Hike International Visitor Levy Amidst Lagging Tourism Recovery
(IN SHORT) The International Air Transport Association (IATA) has expressed disappointment with New Zealand’s decision to increase the International Visitor Conservation and Tourism Levy (IVL) and visa fees, warning that these changes could make travel to New Zealand more expensive and delay tourism recovery beyond 2026. IATA’s Regional Vice President, Dr. Xie Xingquan, criticized the economic impact of the levy and called for the government to focus on improving the country’s appeal as a tourist destination. He also urged transparency on how the IVL funds would be allocated, suggesting they be used for aviation decarbonization projects.
(PRESS RELEASE) Singapore, 2024-Sep-4 — /Travel PR News/ — The International Air Transport Association (IATA) has voiced strong concerns over the New Zealand Government’s recent decision to increase the International Visitor Conservation and Tourism Levy (IVL). This move, coupled with steep visa fee hikes, is expected to make travel to New Zealand more costly and potentially hamper the nation’s tourism recovery, which is already trailing behind other major markets.
Dr. Xie Xingquan, IATA’s Regional Vice President for North Asia and Asia-Pacific, expressed disappointment, emphasizing that these changes could extend the recovery of New Zealand’s tourism sector beyond 2026. While countries like Australia, Canada, and the US are on track to regain pre-pandemic visitor numbers by 2024, New Zealand’s aviation market continues to struggle.
Dr. Xie highlighted the economic implications, noting that for every dollar generated from the increased IVL, more than three times that amount in economic activity could be lost. He urged the New Zealand government to reconsider its approach, suggesting that enhancing the country’s appeal as a tourist destination should be prioritized over measures that might deter visitors.
IATA had previously submitted recommendations during the public consultation process, advocating against the levy increase. However, the government proceeded with the decision before the consultation concluded, raising questions about the process’s transparency. Dr. Xie also called for clarity on how the additional IVL revenue would be used, suggesting that funds should be directed towards projects that support the decarbonization of aviation.
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Source: IATA
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