Extra Tourist Don’t Translate to Extra GST, According to NZ First

June 13, 2016 New Zealand Taxation

Come Fly with MeNew Zealand First has raised questions about why GST collections from tourism are not rising in line with growing tourist numbers.

In a new press release issued on June 13th the New Zealand First Party claimed that the surge in tourist numbers has not been reflected in the national tax revenues from the collection of GST.

According to New Zealand First, while visitor arrival numbers may have increased, the total expenditure by tourists is not rising, as tourists are staying for a shorter time.

It was explained that “…There should be a parallel or ratio between total tourism revenue and GST derived from it,” but “…if we have a foreign tourism boom, then why is GST from tourism collection many billions lower than it should be from the total tourism revenue that Mr Key trumpets?”

In the press release it was noted that the Prime Minister John Key has stated that “…he plans to make tourism the number one earner of foreign exchange in the coming years,” although “…if that is the case, the economy should be benefitting from the tax paid by tourists for goods and services.”

Photo by Ewan-M