New Zealand is set to significantly increase its International Visitor Conservation and Tourism Levy (IVL) starting October 1, in an effort to address the costs associated with tourism. The fee for international visitors will rise from approximately Rs1,800 (NZ$35) to around Rs5,178 (NZ$100), nearly tripling the current rate.

The primary aim of this fee hike is to mitigate the impact of tourism on local communities, particularly the strain on infrastructure and the upkeep of natural sites. The additional funds generated by the levy will be used to manage these challenges, supporting conservation efforts and improving the overall visitor experience.

According to the country's Minister for Hospitality and Tourism, the increased levy is part of a broader strategy to promote economic growth and sustain high-value conservation areas. The funds will be directed toward maintaining public services utilized by tourists and enhancing the preservation of biodiversity in national parks and other popular tourist destinations.

The IVL was first introduced in 2019 to ensure that tourists contribute to the costs their visits incur on New Zealand's infrastructure and natural environment. The decision to raise the levy followed a public consultation, with 93% of respondents supporting the increase as a reasonable measure to help cover tourism-related expenses.

While the government is optimistic that the increased levy will support the growth of the tourism sector, there are concerns within the industry. Critics argue that the higher fees could make New Zealand a less attractive destination, particularly in light of recent increases in visitor visa fees. This concern is echoed by the aviation sector, which fears that the combined cost increases may delay the recovery of New Zealand’s travel industry, which is currently lagging behind other major markets.

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