The cruise shipping industry has raised concerns over the potential impact of proposed increases to New Zealand's border levies, warning that higher fees could lead to fewer cruise ships visiting the country. The changes, proposed by Customs and the Ministry for Primary Industries, are set to take effect from December 1, with consultation on the matter closing in early August.
The proposal includes an 88% hike in customs fees for cruise ship passengers, increasing from $11.48 to $21.54 per tourist, while border levy rates would decrease for air travelers and sea travelers not arriving by cruise ship.
New Zealand Cruise Association CEO Jacqui Lloyd highlighted that the short notice of the fee increase could deter cruise operators, as cruises are typically sold at least a year in advance. Lloyd estimated that with 279,000 passengers expected this season, the increase would cost cruise operators an additional $2.2 million, an "extraordinary" burden for a sector still recovering from the crisis.
Lloyd also noted that the rising costs of operating in New Zealand had already resulted in a 15% reduction in cruise visits this coming season, with a further 15 to 20% decline anticipated for the 2025-2026 season. She emphasized that the sector had been "very surprised" by the number of fee increases, particularly when the country should be focusing on attracting visitors back. Additional increases, such as the rise in visitor visa fees and the potential jump in the international visitor conservation and tourism levy, could further impact the industry.