Tourist tax will cut visitors, revenue, growth


 

The Government’s proposed tourist tax of up to $35 will see visitor numbers, revenue and economic growth fall, according to ACT Leader David Seymour.

 

“A new tax, while boosting the Government’s coffers, will discourage international visitors from travelling and spending money in New Zealand.

 

“That will hurt businesses and see fewer jobs created by tourism operators.

 

Research conducted in 2015 by NZIER on National’s $26 border clearance tax projected that it would cut visitor numbers by 34,000 and tourist revenue by $55 million. The government was forecast to receive only $61 million in revenue as a result of the tax.

 

“The revenue gained by government through this tax will be offset by New Zealand tourist operators getting a smaller slice of the pie. There’s no free lunch here.

 

“It also ignores the fact that tourists already pay their way. NZIER economists have said that visitors pay more in tax than they receive in benefits.

 

“This is another misguided policy from the Ardern-Peters government that will put a handbrake on our economic growth and will ultimately hurt New Zealanders”, says Mr Seymour.