International Visitor Levy
Background
In May 2024, Ministry of Business, Innovation and Employment (MBIE) sought feedback on whether to increase the $35 International Visitor Conservation and Tourism Levy (IVL). MBIE also sought feedback on what IVL revenue is used for across tourism and conservation.
The Government believes too many costs imposed by international visitors are paid by taxpayers and ratepayers and wishes to explore raising the IVL amount to help visitors contribute more fairly towards the services they use in New Zealand.
The IVL was established in 2019 to support a sustainable tourism system in which international visitors contribute to the costs of tourism. 5 years after its introduction, it was time to review the $35 amount.
Position Statement
Museums Aotearoa supported the option to increase the IVL by $65 to $100 and we are pleased to see the levy increased as a result of the consultation process.
MA proposed to the Government an investment solution to invest this additional revenue back into tourism. In our submission we made a case for using a quarter of the estimated revenue for investment into museums and galleries, this equates to around $57million per annum. While this is a large investment, we can prove its return. Further, it is the only source of central government funding available to keep museums and galleries operating.
Museums and galleries are a critical part of our national infrastructure and tourism offering, yet local government authorities are cutting funding, while the only capital fund from central government has ceased (the Regional Culture and Heritage fund in the 2024 Budget) and Lotteries and Creative New Zealand grants have shrunk significantly.
This proposal is for a data-driven investment and demonstrates a willingness to do things innovatively.
Read full submission and proposal for investment below.
Result
The International Visitor Conservation and Tourism Levy (IVL) will be raised to $100 from $35, effective from 1 October 2024.
Public consultation by the Ministry of Business Innovation and Employment (MBIE) found 93 per cent of submitters supported raising the IVL, with the main rationale being an increase would be reasonable to help cover the costs of tourism. “The new IVL remains competitive with countries like Australia and the UK, and we are confident New Zealand will continue to be seen as an attractive visitor destination by many around the world.
MBIE received a total of 1,101 submissions on the proposed changes and you can read the submission summary below.
The Beehive noted "Proposals for government investment to support tourism growth and conservation will be considered in due course."
MA is awaiting details of this investment.
Read full Beehive Press Release Decision below.
Document Links
Museums Aotearoa International Visitor IVL Submission
