Government robs hyper tourism tax
Oh what a surprise…
Key stakeholders expected the near-threefold increase in the foreign tourist levy last year to feed into cash-starved tourism and conservation efforts, but the vast majority is beefing up the Government’s own books.
Budget documents reveal the Government is banking up to $139 million a year from International Visitor Levy (IVL) revenue, paid by about 60% of international visitors, which was lifted a year ago from $35 to $100.
IVL ministers (Minister of Finance Nicola Willis, Minister for Tourism and Hospitality Louise Upston and Minister of Conservation Tama Potaka) decided in Budget 2025 to allocate $55m a year from the IVL pot to new spending in conservation and $35m to new spending in tourism.
This is from an estimated annual IVL pot of $229m, though this may have been revised down to $190m a year due to fewer-than-expected numbers.
This means at least $100m a year, and up to $139m a year, is flowing back to the Crown in the form of a funding switch: swapping IVL money for Crown spending.
This money is supposed to offset the damage and gridlock caused to our infrastructure from hyper tourism, taking that money and pocketing it is totally unacceptable.
Why are they allowed to get away with this?
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National did this before they robbed HNZ they were using it as cash cow while selling of land, houses and flat claiming they were not suitable, reducing the stock of social housing and they are still doing this despite not getting a mandate (during election time) they just tell porkies, and Bishop is good at it.
National did this before they robbed HNZ they were using it as cash cow while selling of land, houses and flat claiming they were not suitable, reducing the stock of social housing and they are still doing this despite not getting a mandate (during election time) they just tell porkies, and Bishop is good at it.
Why would anyone be surprised? NZ, for, the Coalition is simply a smorgasbord of plunder.
What could we expect from increased tourist tax revenues earmarked for conservation?
Increase number of threatened species saved.
More rivers cleaned up.
More possums trapped.
More deer culled.
More bird, snail and lizard studies.
Greater freedom camper toileting.
Safer rural access roads.
What do we get? Sorted city landlords.
It’s the ring fence problem. Auckland City does the same it charges developers and home builders a sizeable parks and reserves contribution. The city gets more dense but they don’t tear down any buildings to create more parks for the extra people. Instead the money is consolidated and spent on other stuff.