I have zero issues with foreign visitors paying more to visit New Zealand. The tax hike that is being touted is big – $35 up to $100 per visitor, and that is substantial.
Crucially though, our Aussie mates are exempt, and they make up 40% of our market. So that's a good chunk who won't be contributing and shouldn't be affected in terms of numbers visiting us here.
The impact, the overall impact still quite unclear.
The Government on one hand says they've got MBIE advice, which is always good advice, saying that it won't be a significant impact. The industry says we will have 48,000 fewer visitors coming here and they'll take their almost $300 million spend elsewhere. The industry says this is alarming.
It's possible they're both right here. The total tourist numbers visiting in the year to June is 3.2 million. So, 48,000 is both not significant if you're the Government, but alarming if you're the industry.
The cold, hard reality is we're not as hot as we used to be when it comes to New Zealand as a destination, not as sexy, you could say.
Post-Covid, our recovery has stalled. I think we're at about 73% of pre-Covid levels in terms of visitors.
Largely, this is about cost. It’s not because our mountains are any less beautiful, our lakes less attractive, it’s largely about the cost of getting here.
But those issues, you know, the plane supply, the routes, et cetera, should subside. And when that happens, don't we want the extra money to maintain our walking tracks and to give the Germans somewhere to go to the loo?
I would have thought so.
And if it's going to put anyone off, wouldn't it be the low spending, high infrastructure using smelly backpacker variety? Of which I have been one, I'm not disparaging them, and, well, I suppose I am disparaging them a little, disparaging myself.
But don't we want sort of higher spending, higher yield tourists coming here? Using less of the country and less of its resources and infrastructure but spending more?