New Zealand Tourism Hurt by UK Tax

2011 World Cup Travel Effected by Hefty 'Environmental' Tariff

The British parliament has announced that it will increase departure tax from its shores. This announcement has greatly worried the New Zealand tourism industry as increased travel prices may deter some British citizens from traveling to New Zealand.

The current tax for departing from the UK for New Zealand sits at around 40 pounds, but in 2009 the tax will increase to 55 pounds and will again increase to 85 pounds in 2010. This increase in departure tax has worried the New Zealand tourism industry as visitors from the UK make up the largest group of tourists to their shores. Adding 360 pounds to the costs for a traveling family is significant given 230 pounds is the going rate at the moment.

World Cup Travel to Decrease?

This announcement brings particular worry as New Zealand is the host of the 2011 World Cup, and an increase in departure tax may deter English tourists from visiting New Zealand. New Zealand's Prime Minister John Key, also Minister of Tourism, attempted to outline the negative effects of the imposed tax.

Key met British Prime Minister Gordon Brown on a trip to London to unveil a giant rugby ball to promote the 2011 world cup. The tax was aimed at targeting environmental issues, but many believe it will just go into government coffers.

The New Zealand tourism industry has already experienced a major hit as numbers have decreased over the past two years due to the world economy. Further decreases in the industry could also increase unemployment as one in 10 New Zealanders are employed by the tourism industry. The announcement caused a fall in Tourism Holding LTD., New Zealand's largest tourism company.