New Zealand has recently introduced significant changes to its visitor visa policy, notably increasing visa fees and levies. Effective from October 1, 2024, the International Visitor Conservation and Tourism Levy (IVL) will rise from NZ$35 to NZ$100. The government wants to ensure visitors coming to our beautiful country contribute towards the public services they use. However, this move has drawn criticism from the tourism sector, which fears that the higher costs may deter potential visitors.
Trends in Visa Levies
From 1st October 2024, the visitor visa application fee will also increase by $130 and become $341 (BAND A). The increase in visa fees and IVL aims to make government departments become more self-sufficient and provide better service and infrastructure. Before COVID-19, international tourism was a major contributor to New Zealand’s economy, with visitor numbers and spending much higher than they are now. In 2023, international visitor numbers returned to 76% of pre-pandemic levels, but spending remained at 71%. So, we have not yet recovered from the impact of COVID-19.
You may be surprised to know that visitors from Australia and the Pacific do not have to pay this levy. Have we missed a trick here, in not imposing similar conditions on all visitors? After all, every visitor enjoys the same use of public-services.
Comparative Analysis: NZ vs. the World
Several other countries like Spain, Indonesia, France, Austria, Croatia, and Italy also charge a similar levy. Venice charges and ‘entrance’ fee from visitors on certain days and times.
Canada charges $100/person or $500 for a family of 5 or more. Australia charges $195/person. We may be more expensive than other countries but being a smaller country we do not have the economies of scale advantage and hence the increase may be justified.
Want to spend Christmas with family? Apply before 15 October 2024.
INZ expects to receive more than 260,000 applications in the peak summer period of 2024. In a recent communication, Immigration New Zealand has warned that if you are planning to invite family members/friends for Christmas, it is best to submit their application by 15 October 2024. The clock is ticking!
Addressing Visa Processing Challenges
You will pay more for a visitor visa application, but are you guaranteed a better service? Well, this remains to be seen. In my opinion, INZ needs to stop applying a one-size-fits-all approach when assessing bonafides of visitors. This has been a constant reason of frustration in applicants and immigration professionals in the past 12 months. To effectively tackle these challenges, a more nuanced approach to assessing visa applications is required.
Increased visa fees and levies will help government departments become self-sustaining, but visitors and visa applicants will expect better services and quicker turnaround times. Our hospitality and tourism sector needs a bumper summer. I hope the government delivers it.
(Hemant Kaushal is a Licensed Immigration Adviser who runs his own practice in Auckland. His practice handles various simple and complicated immigration matters. Nothing in this article constitutes immigration advice and we strongly recommend you consult a Licensed Immigration Adviser or a lawyer to discuss your specific circumstances.)
ISSUE
