Cruise Lines Urge New Zealand to Reconsider Massive Fee Hike

Hoping to reduce fees for passengers and prevent a downturn in tourism, cruise lines are urging the New Zealand government to rethink plans for a significant increase in visitor fees.

The proposed 136 percent hike in cruise visitor fees by New Zealand Customs on September 3, 2024, has sparked concern in the cruise industry. It fears the move could exacerbate an alarming decline in cruise tourism nationwide.

Cruise Lines International Association (CLIA) Australasia’s Managing Director Joel Katz has voiced strong opposition to the planned fee increase, warning that it could worsen a costs crisis that is already causing harm to New Zealand businesses and local communities.

According to Katz, New Zealand is witnessing a substantial decrease in cruise visitors, with a projected 22 percent decline during the upcoming summer season, a trend primarily driven by high costs and complex regulations.

“While cruise tourism is at record levels internationally, New Zealand destinations face a 22 percent fall in cruise visitors,” Katz said. “Cruise lines have been forced to reduce their deployments in New Zealand, which is now one of the most expensive destinations in the world for cruise operations.”

He continued, “Even before this Customs increase, New Zealand communities are facing estimated losses of at least $157 million in reduced tourism over the 2024-2025 season.”

Katz emphasized that New Zealand’s appeal as a cruise destination, although significant, is being overshadowed by escalating costs imposed by both ports and government agencies.

“New Zealand is one of the most desirable cruise destinations in the world, and cruise lines have invested heavily over many years to develop international cruise operations in local waters,” Katz said.

“Cruise tourism is ordinarily worth more than $500 million a year to communities around the coast of New Zealand, but this is now threatened by a succession of exorbitant cost increases by ports and government agencies,” he warned.

Tourism Industry Warns of Potential Setback

New Zealand’s government announced it would nearly triple its entry fees for international visitors beginning October 1, 2024. The international visitor and conservation levy would increase from NZ$35 to NZ$100 (approximately US$62.20).

The fee hike ensures that tourists contribute more effectively to the country’s public services and maintain high-quality experiences during their stay.

The decision comes as New Zealand grapples with the strain many tourists place on its natural environment and infrastructure. Since its introduction in July 2019, the original NZ$35 fee has proven insufficient to cover the costs associated with managing tourism’s environmental impact.

The government asserts that the increased fee remains competitive globally, and it is confident that New Zealand will continue to attract visitors despite the higher charges.

Read Also: Cozumel Agrees on New Fee for Cruise Passengers

CLIA is not the only organization concerned with the potential increases. The Tourism Industry Association of New Zealand expressed concerns that the higher fees could discourage visitors, particularly as the sector struggles to rebound from the severe downturn caused by the pandemic.

Before Covid-19, tourism was New Zealand’s largest export earner, but recovery has been slow. The industry fears this new fee could hinder progress.

Rebecca Ingram, chief executive of the Tourism Industry Association, voiced the sector’s concerns, stating, “New Zealand’s tourism recovery is failing behind the rest of the world, and this will further dent our global competitiveness.”

Recent data released by StatsNZ on August 13, 2024, adds weight to these concerns. For the year ending June 30, 2024, travel from overseas was down 17 percent since the record of 3.9 million received in 2019.