Country to tax tourists as influx grows

pulse

June 15, 2018 9:46 AM

Tourists to New Zealand are to be charged a special tax, under new government plans announced Friday to deal with the growing influx of holidaymakers coming from overseas.

Visitor numbers have surged by nearly a third in the past three years to 3.8 million in the 12 months to April -- almost as big as the country's population.

"This rapid growth has impacted on the costs and availability of publicly-provided infrastructure," tourism minister Kelvin Davis said.

"Many regions are struggling to cope and urgently need improved infrastructure, from toilet facilities to carparks."

A tax of NZ$25-35 (US$17-24) will be imposed on international visitors from the middle of 2019, while price hikes for immigration fees and visas will take effect this November.

Australians and most Pacific Island forum countries will be exempt from the new charges.

Tourism is a key pillar of the New Zealand economy and the new tax is expected to raise up to NZ$80 million in its first year, which will be split between tourism infrastructure and conservation initiatives.

The main opposition National Party claimed the new tax system would make New Zealand a "less attractive" destination.

But Davis believed the impact on tourist numbers would be minimal.

"When you're talking about the additional cost to, say, someone coming from the United States who are already paying about NZ$1,200, an extra NZ$25-NZ$30 isn't going to make that much of a difference," he said.

According to data released by Tourism New Zealand in September last year, despite overall support for tourism, 35 percent of citizens think "international visitors put too much pressure" on the country.

Global backlash

The New Zealand tax plan comes as locals in many of the top tourist destinations around the world grow frustrated with tourists who boost the economy but also put pressure on infrastructure and raise the cost of living.

Many residents complain that the cost of providing facilities -- like public transport and emergency healthcare -- and cleaning up after hordes of tourists is borne by taxpayers.

Growth in tourism, fuelled by the rise of budget airlines and holiday rental services, has also led to housing shortages, property speculation and rising rents, pricing out locals in hubs like Barcelona, Venice and Berlin.

The resulting anger has forced authorities around the world to tighten regulations on short-term rentals, such as Airbnb.

In Paris and Japan, for example, governments have moved to cap the number of days per year a property can be given to short-term renters. One part of Tokyo only allows rentals on weekends. Other cities have enforced similar limits.

Japan has seen record numbers of tourists recently and expects 40 million in 2020 when Tokyo hosts to Olympic Games. But a study has warned that the crush could lead to "fatal congestion" and paralyse the city's subway system.

Local media reported Friday that Japan was also weighing measures to bar visitors who use Japanese medical facilities without paying their bills.

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