Australia, US, UK, China, and India Tourists Furious Over Non-Refundable NZ$100 Tourism Levy, Airlines and Hotels Brace for Backlash!

Australia, US, UK, China, and India tourists are fuming over New Zealand’s controversial decision to impose a non-refundable NZ$100 tourism levy on all visa applicants, even when their visa applications are rejected. This policy, which has been in place since 2024, has sparked outrage across key international markets that make up a significant portion of New Zealand’s tourism industry. Travellers from these countries, known for their long-haul flights and high travel costs, are now questioning the fairness of paying a hefty fee upfront without any guarantee of approval. Immigration advisors and industry professionals have raised serious concerns about the impact this could have on New Zealand’s tourism, with airlines like Air New Zealand and international hotel chains fearing a potential drop in visitor numbers. As frustration mounts, many are now reconsidering their travel plans to New Zealand, questioning whether the country’s stunning landscapes and vibrant culture are worth the additional financial risk. The tourism levy, which was originally introduced to help fund conservation and infrastructure, may now be backfiring, threatening to push away the very travellers who contribute the most to the country’s economy. With more tourists likely to explore alternative destinations, the long-term effects of this policy on New Zealand’s hospitality and airline industries remain uncertain, leaving both travellers and industry leaders to navigate a rapidly changing tourism landscape.

Australia, US, UK, China, and India Tourists Furious Over Non-Refundable NZ$100 Tourism Levy – Airlines and Hotels Brace for Backlash!

New Zealand, long celebrated for its pristine landscapes and vibrant tourism sector, is grappling with a storm of controversy following the introduction of a non-refundable NZ$100 tourism levy. Tourists from key international markets like Australia, the United States, the United Kingdom, China, and India are voicing their displeasure over paying the levy even if their visa applications are rejected. The introduction of this levy, which was implemented in 2024, has sparked outrage among travellers, immigration professionals, and industry experts alike, especially given that the fee is collected upfront before the visa approval process. This issue is creating ripple effects in New Zealand’s airline and hospitality industries, raising concerns about the future of tourism in the region.

The Controversy Around New Zealand’s NZ$100 Tourism Levy

The International Visitor Conservation and Tourism Levy (IVL) was first introduced in 2019 as a NZ$35 charge for international visitors applying for visas or Electronic Travel Authorities (ETAs) to New Zealand. The goal was to ensure that the costs associated with maintaining New Zealand’s tourism infrastructure and preserving its environment would be shared by those who benefit from these resources. However, the sudden increase to NZ$100 in late 2024, coupled with the stipulation that the levy is non-refundable even in the event of a visa rejection, has raised eyebrows worldwide.

The decision to charge the tourism levy upfront, before the outcome of a visa application, has led to frustrations among applicants who, when denied a visa, are left without their money. Immigration experts and advisors have expressed concerns about the fairness of this practice. The argument is that tourists are being unfairly burdened with a fee for services they will never use, especially when the visa application process can be complicated, and rejection can occur for reasons as simple as administrative errors or misunderstandings. This non-refundable levy policy is starting to create a wave of discontent, particularly in markets that are key to New Zealand’s tourism sector.

Australia, US, UK, China, and India Tourists Furious Over Non-Refundable NZ$100 Tourism Levy

The four countries—Australia, the United States, the United Kingdom, China, and India—are among the top sources of international visitors to New Zealand. For Australians, the NZ$100 levy is a relatively small addition, given their proximity to New Zealand, and the ease of frequent travel between the two nations. However, for visitors from the United States, the United Kingdom, China, and India, the NZ$100 levy is a significant burden. These travellers typically make long-haul journeys, which are already costly due to airfare, accommodation, and other travel expenses.

For these visitors, paying NZ$100 upfront without any guarantee of visa approval feels like an unfair gamble. The potential rejection of a visa application and the subsequent loss of the levy has led to negative sentiments. Immigration professionals, such as Jagjeet Singh Sidhu, president of the New Zealand Forum for Immigration Professionals, have voiced concerns about the impact of this levy on New Zealand’s reputation as a travel destination. Sidhu points out that it could discourage potential tourists, particularly those on tight budgets or larger families, from visiting New Zealand altogether.

Airline Industry Faces Growing Concerns Over the Impact of the Non-Refundable Levy

The airline industry, already dealing with the aftershocks of the COVID-19 pandemic, is also feeling the impact of New Zealand’s non-refundable tourism levy. International airlines that regularly fly to New Zealand, such as Air New Zealand, Qantas, Emirates, and Singapore Airlines, are now dealing with potential backlash from passengers who are unhappy about the additional cost.

Airlines play a critical role in facilitating international travel, and any increase in travel costs can deter customers, especially in an environment where many people are already tightening their budgets. While the NZ$100 levy is likely to be just one additional factor in the decision-making process for many travellers, it is not an insignificant one. If more visitors choose to skip New Zealand in favour of destinations with lower visa fees or no visa requirements at all, airlines may see a reduction in bookings for flights to New Zealand.

As an example, Air New Zealand, which has long been a leader in international air travel to New Zealand, has already seen signs of changing dynamics as passenger preferences shift. More budget-conscious tourists from markets such as the United States and the UK, who might have considered New Zealand as a holiday destination, could be discouraged from making the long flight to the southern hemisphere.

The situation is further compounded by increasing competition in the global travel sector. While New Zealand remains a popular destination, competing markets like Australia, Japan, and Southeast Asia are aggressively positioning themselves as more affordable options. The higher cost of flights combined with the non-refundable levy could impact New Zealand’s ability to maintain its tourism numbers, especially from these key international markets.

The Hospitality Industry: A Mixed Blessing

On the flip side, New Zealand’s hospitality industry, including hotels, resorts, and tour operators, may initially appear to benefit from the influx of international visitors. The tourism sector contributes a significant amount to New Zealand’s GDP, with recent figures showing that tourism spending reached NZ$17 billion in 2025. However, the industry also faces potential repercussions from the NZ$100 levy.

Hotels such as the Wellington Hotel, Auckland’s SkyCity Grand, and iconic resort chains like Accor Hotels are expected to continue seeing demand from international tourists. However, if more potential visitors are deterred by the high upfront visa costs, hotels could experience a decline in bookings from overseas tourists, especially those from the United States, the UK, China, and India, where travellers tend to be more price-sensitive.

While the hospitality industry could initially experience a spike in business due to the increased number of visitors, the longer-term effects of the levy could be damaging. Tourists, particularly from emerging markets such as China and India, could opt for cheaper, more accessible alternatives, which could divert significant business from New Zealand’s renowned hospitality offerings.

Travel Tips for Tourists Visiting New Zealand

For those planning a trip to New Zealand, here are some important tips to help make the most of your experience:

1. Plan Your Visa Application Carefully: Since the NZ$100 levy is non-refundable, it’s crucial to ensure that your visa application is as accurate as possible. Double-check all the details before submitting your application to minimize the risk of a rejection.
2. Consider Alternative Destinations: If you’re feeling uncertain about the cost of the NZ$100 tourism levy, consider exploring other destinations in the Asia-Pacific region. Countries like Australia, Japan, and Thailand are all within similar distances and often have less stringent visa requirements.
3. Watch for Visa Deals: Airlines like Air New Zealand, Qantas, and Emirates frequently run special promotions that could help offset some of the additional costs of travelling to New Zealand. Be on the lookout for seasonal sales that could make your travel more affordable.
4. Book Flights Early: As airfares to New Zealand can be expensive, especially with the added burden of the NZ$100 levy, booking flights early can often lead to significant savings. Make sure to use flight comparison tools to find the best deals.
5. Accommodation Deals: Many New Zealand hotels and resorts offer discounts or package deals for tourists who book well in advance. Consider looking into package deals that include airfare, accommodation, and activities to save on the overall cost of your trip.

What Does This Mean for the Future of New Zealand Tourism?

As New Zealand grapples with the fallout from its tourism levy, it will be essential to monitor how the tourism landscape evolves. The non-refundable NZ$100 fee has already caused friction with tourists from top markets, raising questions about the country’s ability to maintain its competitive edge in a growing global tourism industry. New Zealand’s tourism and hospitality industries are bracing for the long-term impact of the levy, especially as airlines like Air New Zealand and international carriers adjust to changing booking trends.

The government may eventually need to review its tourism levy policy to balance the need for tourism revenue with the potential damage to New Zealand’s image as a tourist-friendly destination. While the country remains a top travel destination for nature lovers and adventure seekers, it is clear that the non-refundable tourism levy is adding an unexpected layer of complexity to the travel experience. Whether or not this levy will have a lasting effect on New Zealand’s tourism economy remains to be seen.

As more countries like Australia, the US, the UK, China, and India adjust their travel habits due to these changes, it will be crucial for the New Zealand tourism industry to remain adaptable. The country’s ability to offer competitive pricing on everything from flights to accommodation could help offset the negative impacts of the tourism levy, but only time will tell if this strategy will succeed in maintaining New Zealand’s place as a top tourist destination.

Australia, US, UK, China, and India tourists are outraged by New Zealand’s non-refundable NZ$100 tourism levy, even when visa applications are rejected. This controversial policy is sparking concerns within the airline and hospitality industries, threatening the country’s tourism appeal.

In the meantime, tourists considering a trip to New Zealand should weigh the costs and plan accordingly, ensuring they’re prepared for the NZ$100 levy before beginning their visa application process. Despite the controversy, the country’s breathtaking landscapes, rich culture, and iconic attractions like the Bay of Islands, Rotorua’s geothermal wonders, and the Southern Alps continue to make New Zealand a must-visit destination for travellers around the globe.

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Air New Zealand said on 11 Feb that it had cancelled 46 wide-body long-haul services ahead of a planned two-day strike by its unionised international cabin crew over stalled negotiations, which was reported by Reuters. […]