Executive summary
The Ministry of Business, Innovation and Employment (MBIE) (on behalf of the Government) publicly consulted on 2 proposed changes to the operation of the International Visitor Conservation and Tourism Levy (IVL).
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These were:
- the amount of the IVL paid by each eligible visitor, and
- where funding generated through the IVL should be spent.
The discussion document that supported the consultation was published on MBIE’s website on 15 May 2024 and a stakeholder alert was sent to MBIE’s tourism stakeholder list. MBIE conducted targeted social media advertising to raise awareness of the consultation. Social media marketing was focussed on key tourism locations in New Zealand and on those profiles with an interest in tourism and conservation related issues.
MBIE received a total of 1,101 submissions on the proposed changes to the IVL, this included 1,011 responses via the online survey and 90 responses via email. Submissions were coded and assessed by MBIE staff.
Key findings from the IVL consultation are as follows:
- 88% of submitters agreed that current levels of IVL revenue (approximately $80 million) are not sufficient to address issues facing tourism and conservation. The main reasons given related to both conservation and tourism infrastructure needing more funding.
- 84% of submitters agreed that the IVL could be used to address some of the costs for tourism and conservation currently funded by the Crown. However, submitters noted this should be in addition to Crown funding and not as a replacement.
- 93% of submitters preferred that the IVL amount should be increased, with the main rationale being an increase would be reasonable to help cover the costs of tourism and would put New Zealand in line with other countries’ charges.
- 7% of submitters preferred that the IVL amount remain at the current status quo of $35, with the main reasons being the potential risk to visitor numbers and that alternative funding tools should be explored instead.
- 66% of submitters supported an increase by $65 to $100, while 19% supported an increase by $35 to $70 and only 15% supported an increase by $15 to $50.
- 85% of submitters strongly agreed or agreed that the IVL should be used to address visitor pressure on mixed-use tourism infrastructure and wider tourism assets and 93% felt it should address visitor pressure on the public conservation estate.
- 54% of submitters strongly disagreed or disagreed with the IVL being used to contribute to the funding mix for international tourism marketing costs (investment into Tourism New Zealand).
The responses to this consultation will be used to inform advice to the Minister for Tourism and Hospitality, the Minister of Conservation, and the Minister of Finance regarding possible changes to the operation of the IVL.