TIA is disappointed at the Government's announcement of immigration visa fee increases for visitors.
Tourism Industry Aotearoa (TIA) has expressed its deep disappointment with the increases in immigration fees for Visitor Visas and Working Holiday Visas announced by the Government.
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. These additional costs will create a barrier that will deter visitors from choosing New Zealand,” said TIA Chief Executive Rebecca Ingram.
The new fee structure will see the cost of a Visitor Visa rise by NZD $130 to NZD $341 per person (61 percent increase) and a Working Holiday Visa rise by NZD $250 to NZD $670 per person (59 percent 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," Ingram added.
"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."
TIA said that 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 NZD $120 million in visitor expenditure.
The TIA also had cumulative cost concerns. The combined costs of various fees and levies for visitors are rising significantly, which will be a barrier to visitors entering New Zealand. All visitor costs, including the International Visitor Levy, must be considered.
“We advocated for a connection between the proposed levy increases and the actual costs incurred by the immigration system.”
International visitors contribute substantially to New Zealand’s economy, generating NZD $7.3 billion in government revenue pre-COVID, including NZD $3.8 billion in GST. Each visitor contributes an average of $849 to crown revenue.
Working Holiday visitors are crucial to New Zealand’s workforce, especially in the tourism industry, with 37 percent of businesses hiring them over the summer. Increased visa costs could deter these essential workers.
TIA said that 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.
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