IATA has described a proposed tourism tax in New Zealand as an “ineffective and ill-conceived policy choice”.
IATA has emphasized to the New Zealand authorities that introducing the tax on international air travelers would undoubtedly slow passenger demand, and negatively impact the New Zealand economy.
Imposing the charge would directly contravene accepted ICAO guidelines
IATA estimates the tax could result in a reduction of 78,000 international passengers per year to New Zealand, and lower GDP by USD$70 million.
IATA has also made clear to the New Zealand government that imposing the charge would directly contravene accepted International Civil Aviation Organization (ICAO) guidelines, which do not support such taxes.
Under the proposal, IATA understands the tax will not be imposed on New Zealand citizens. IATA says processing these exemptions would present a significant administrative burden, and cost expense, which should not be borne by airlines.
If the charge is introduced, IATA has suggested the New Zealand authorities take responsibility for collecting the tax upon arrival or departure.