One of our very best financial journalists is the Herald’s Fran O’Sullivan.
In a deservedly scathing attack on the insanity of the government’s recent introduction of $100 tourist Visa fee for Chinese visitors, Fran trotted out some hard statistical facts. These are,
1) Chinese tourist numbers are lagging.
In the 12 months to October 2018, 451,344 Chinese tourists arrived. Last year almost half that number (245,305) came.
Since our introducing the Visa fee Chinese tourists to Australia rose by 30% while declining in New Zealand.
2) Singapore wiped their Visa fee for China in early 2023, resulting in an immediate 80% increase.
Research shows the average Chinese tourist visiting New Zealand spends $6537.
Given that readers might well say $100 should make no difference, but if so then they’re overlooking a significant reality.
That is, we humans are never robotically rational in our behaviour.
Instead, emotions, prejudices and such like factors interfere and never moreso than with expenditure, often seen as a rip-off, no matter how trivial the amount. On the other side of the coin, consider this.
Nepal has just lifted the permit fee to climb Mount Everest in the summer months, from US $11,000 to US $14,000. The fee is cheaper in the winter months.
Circa 1,000 people attempt it annually, but note this, going it alone inevitably sees deaths. To succeed safely most climbers pay companies to escort them, depending on the time of the year, at a cost of up to a third of a million NZ dollars. No matter the cost the silly buggers keep coming, simply for bragging purposes.
Now compare visiting New Zealand at a fee of $100, as opposed to no fee for say Australia.
Irrationally though it plainly is, as Fran has pointed out, it nevertheless acts as a deterrent for unlike climbing Everest there’s no sense of accomplishment.
Some cities such as Paris, London and New York often boast of their tourism earnings.
I question these figures. The real value from tourism is in providing numerous low-paid jobs in restaurants, driving tourist buses and so on for in many cases people who would otherwise be unemployable and a cost on the state.
Such is the complex nature of modern society. But assuming rationality in human behaviour is always a huge miscalculation in ignoring the reality of our more common irrationality.
11 Comments
Not only Chinese get the $100 extra on Visas.!!!
Combine that with ridulous prices fro accomodation and meals.
Unless coming from wealthy European countries a visit to new Zealand is Fking expensive.
Experienced this thru the eyes of another Asian visitor(Not Chinese)
..well somebody has to help Meridian pay their ‘virtuous bribe’ money too South Island mafia.
Locals can’t afford to pay for huts as they have nothing left after power bills and rates.
Chief executive feeling reasonably happy however on 8 figure salary…living in his holiday bach Monico.
Can’t understand why people are leaving NZ.
To be fair Meridian chief executive Neil Barclay has announced further compulsary DEI indoctrination for all Meridian “they/them/its”, while “it” “itself” has embarked on a part-time course in Te Reo “Feelings and Aawareness-ness-ness”.
We should all be very appreciative of this and remember we are assisting when finding the money to pay our overdue power bills, ( shame on you for not paying on time; 80% will have an additional penalty payment ).
Would also remark the Barclay Monico bach is of very modest proportion, only having nine ensuited bedrooms, tennis court’s’, movie cinema, fifteen car garage, 40 meter pool, with additional private launch berth adjacent to helicopter pad’s’ and what is only a half hectare property on the Monico waterfront.
Reduced tourism numbers might be a good thing, at least until our infrastructure has caught up with the use requirements. The government would be far better off collecting the extra revenue from toll roads, and perhaps a bed tax to fund this infrastructure.
Even better, reduce the size of the bureaucracy.
Agreed, Tourism does provide low wage employment opportunities; including great holiday jobs for students.
Irrationality Its alive and well in our house hold, there is still a boycott ” Z ” (shell) in our house for some thing the oil company did in Africa back in 1993 . collaborated in the killing of writers. Cadburys did them selves no favors switching to palm oil, the ladies in my house switched to Whitakers, vowing to never go back.
As you will be aware Sir Bob the visa fees of a NZer going to Thailand outside of the normal tourist waiver are astronomical compared to other nations. Why? All I can see is the Thais angry at New Zealand slapping a ridiculously high visa fee on them first!
Fran O’Sullivan’s attack on the $100 visa fee deterring Chinese tourists misses the wider lens. Overall tourism spend soared to NZ$11.7 billion in 2024, up 30%, even as Chinese numbers slid from 451,344 (2018) to 245,305. Behavioral economics—where a small fee stings like a rip-off—may explain their exit, but their NZ$1.1 billion spend isn’t the jackpot it appears: much flows to Chinese operators, leaving maybe NZ$675 million here. Meanwhile, the U.S. added NZ$1.5 billion, with Germany also rising, neutralizing the dip. This nods to the Veblen effect—higher costs signaling exclusivity, drawing wealthier, locally engaged visitors—and the economy’s not suffering for it.
I was born in New Zealand, spent the first forty years of my life there, paid taxes for about twenty five years, but in 2011 became a naturalized USA citizen, which necessitated me putting my hand on the Bible and declaring that I relinquished any allegiance to all foreign Kings, Queens and Potentates.
All well and good, but when I went to visit my family and friends in New Zealand a few weeks ago, I could only return after paying the $100 tourist fee. At first I baulked at this, but then read that the fee would be applied to maintaining DOC huts.
This I considered a reasonable use of my $100.
It felt strange to be a tourist in the land of my birth, oh and as I sit here typing I stopped to check my letter box. Surprise surprise there is a letter
from NZ transport agency waka kotahi alleging that I exceeded the 50kph speed limit on the Great North Rd four weeks ago.
All I remember from driving around New Zealand was impatient tailgating drivers who would speed past me as I would pull over to let them get to whatever was so urgent.
Looking at my $30 infringement notice I notice various typographic errors.
Guess that means I can dispute this case if it goes to court. Waka kotahi will have to come and arrest me in Phoenix Arizona because I no longer have any desire to revisit.
Well then again maybe I will, once Aotearoa/New Zealand becomes the 51st state of the USA.
May need to be the 54th state! Canada, Panama and Greenland have booked the next three places!
Rationally or Irrationally-people respond to incentives. The above is an excellent example of “half-court tennis” (much like the half-wit Trump) via the assumption that the only thing that matters is what you do, and not what will happen in return.
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