Passenger Clearance Charges - Public Good

Passenger Clearance Charges - Public Good

The Tourism Industry Association New Zealand (TIANZ) says it will be most interested to see any evidence that shows charging international visitors additional border and security charges would be good for tourism exports.

The Minister of Finance, Dr Michael Cullen released a discussion document to the industry today outlining proposals to meet a shortfall of government funding in border and passenger security.

“TIANZ will contribute to a robust discussion of the principles surrounding the funding of border security services. Simply keeping up with changing times doesn’t alter Government’s primary responsibility to secure the country’s border - it is a public good.” said TIANZ Chief Executive, John Moriarty.

The latest evidence shows visitors to New Zealand are very responsive to price. Australians have flocked here in droves as a result of a competitive environment which has seen as little as $20 difference in airfares impact significantly on visitors’ travel decisions.

“The Association will work closely with its membership on this issue.” said Mr Moriarty.

Background

“International visitors to New Zealand spent a record $6.4 billion in 2003, up 3.9% from the previous year. This performance continues a long period of growth in tourism earnings where spending has increased at a faster rate than visitor arrivals.

The key performing markets for New Zealand in 2003 were Australia (up 25.8% to $1.17 billion), South Korea (up 133.7% to $619 million) and Germany (up 19% to 229 million). Markets showing declines were the United States (down 18% to $628.2 million) and Japan (down 12% to $620 million). New Zealand’s second largest market, the United Kingdom, increased by 1% to $926.9 million.

These market spending movements reflect a number of influences. For instance, the very strong Australian performance, now exceeding $1 billion in value, reflects strong arrivals growth in this market driven by a competitive trans-Tasman aviation market and a small increase in spending per visit.

The US market softness correlates closely to exchange rate movements with spending in US dollar terms being constant.”

Source: International Visitor Survey. Tourism Research Council New Zealand. For full details go to www.trcnz.govt.nz

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