New Zealand Visa Fee Hike Sparks Concerns Over Tourism and Education Impact.
Following New Zealand’s recent announcement of increased visa fees across most categories, the Board of Airline Representatives of New Zealand (BARNZ) has expressed concerns that the move could lead to a decline in tourist arrivals.
Tourism organizations have also voiced their discontent, criticizing the lack of government consultation prior to the decision. Many in the industry are puzzled as to why New Zealand would introduce such a measure at a time when demand for international visitors is already waning, according to a report by VisaGuide.World.
Earlier this week, New Zealand authorities disclosed plans to raise visa fees starting October 1, 2024. This change is expected to affect those planning to visit the country during the upcoming summer season.
Projections for air services to New Zealand for summer 2024 show only a modest two percent increase compared to summer 2023. The country’s tourism recovery appears to have slowed significantly.
Impact on International Students and Working Holidaymakers
The fee increase is also expected to have repercussions for international students seeking to study in New Zealand. Higher costs for student visas could make New Zealand less attractive as a destination for education.
Cath O’Brien, Executive Director of BARNZ, suggested that the rising costs might deter young people considering working holiday schemes in New Zealand, noting that the visa now costs NZ$670.
“Given that the government has raised costs for visitors, students, and workers, any further increase in the form of a higher International Visitor Levy (IVL) should be reconsidered,” O’Brien said.
However, O’Brien did express support for the proposal to raise the IVL to $100 per person. He cautioned that a decrease in tourist arrivals could eventually lead to reduced air connectivity, which in turn would limit available cargo space for goods entering and leaving New Zealand.
June Visitor Surge Falls Short of Pre-Pandemic Levels
Recent data from Statistics New Zealand showed a 27 percent increase in overseas visitor arrivals in June 2024 compared to the same month in 2023. Despite this growth, the numbers still fall short of the figures seen before the COVID-19 pandemic.
Under the new fee structure, the cost of a visitor visa will rise by 61 percent, from $130 to $341. In June 2024, New Zealand welcomed 3.2 million visitors, up 676,000 from the previous year. The increase was largely driven by visitors from China, the United States, and Australia.
However, even with the rise in numbers, overseas visitor arrivals in June 2024 were still 17 percent lower than the record of 3.9 million seen in June 2019, highlighting the ongoing challenges in the country’s tourism recovery.