A travel industry coalition is calling for the Government to rethink its border tax, which it says could wipe more than $100 million a year from visitor spending.
The group says documents show there is no basis to assertions by Prime Minister John Key that the tax would not make a "blind bit of difference" to visitor numbers.
The Coalition Against Travel Tax says the border clearance levy introduced in the May Budget will be a handbrake on expanding the visitor economy. The tax is aimed at funding increased work by Customs and the Ministry for Primary Industries as the number of arriving air passengers increases.
The proposed maximum amount payable for a cruise ship traveller on a round trip is $26.22 and $21.85 for remaining travellers.
Analysis for the Government by Sapere Research Group, released under the Official Information Act, shows ministers were told the tax would cut the number of international visitors by 1.4 per cent and international spending by 0.9 per cent.
The coalition calculates this would equate to 44,000 visitors and a lost annual spend of $104 million, about the same it is estimated the tax will collect.
"The risks are all negative and the proposal does not align with a government that is publicly committed to boost economic productivity and supporting businesses to thrive," said Tourism Industry Association chief executive and coalition spokesman Chris Roberts.
- Grant Bradley of the New Zealand Herald
