The Government will direct $5 million from the International Visitor Levy into one-off marketing and business events programmes for the 2026/27 year to accelerate tourism's return toward pre-pandemic levels.
Levy Supports Targeted Acceleration
Tourism and Hospitality Minister Louise Upston announced a $4 million boost to Tourism New Zealand marketing in Australia, the United States and China. An extra $1 million will expand the Conference Assistance Programme.
Both allocations are one-off and drawn from the International Visitor Levy, which was raised to $100 per visitor in October 2024 according to MBIE. This structure ensures visitors contribute directly to promotion rather than requiring fresh appropriations from general revenue.
"The Government is focused on growing the economy so Kiwis can get ahead, and as our second largest export, tourism is a crucial part of that." — Louise Upston, Tourism and Hospitality Minister
International visitor arrivals reached 94 per cent of 2019 levels by April 2026, according to Stats NZ. Overseas arrivals totalled 3.63 million in the year ended March 2026, up 9.2 per cent on the prior year.
Overseas visitor spend rose $2.5 billion over two years to $13.7 billion by March 2026, according to MBIE data cited in the Beehive ministerial release. Total tourism expenditure reached $46.6 billion in the year ended March 2025, up 3.3 per cent from the prior year, according to Stats NZ's Tourism Satellite Account.
Prior Investments Show Returns
The new funding builds on a $13.5 million core-market marketing package announced in 2025, according to Tourism New Zealand. That earlier outlay was projected to generate more than $100 million in additional visitor spending, Tourism New Zealand stated at the time of the announcement.
Multi-day conferences supported $925 million in economic activity in 2025 and produced more than 735,000 international visitor nights, according to Business Events Industry Aotearoa. The additional $1 million will help sustain the pipeline of high-value events.
Fuel Costs Pose Headwind
A global fuel crisis linked to Middle East developments may raise operating costs for tourism operators and influence visitor decisions, a concern acknowledged at the TRENZ tourism trade event in May 2026 by Prime Minister Christopher Luxon and sector leaders. The Government stated in the Beehive release that it is working with the sector to keep New Zealand competitive.
Tourism Industry Aotearoa has noted that while the Middle East conflict casts a shadow over the economic outlook, New Zealand's underlying offer remains strong. No formal response to the $5 million package was received from opposition parties or independent economists before publication.
Export Earnings and Regional Benefits
Tourism remains New Zealand's second-largest export earner. International tourism expenditure accounted for 17 per cent of total exports in the year ended March 2025, according to Stats NZ's Tourism Satellite Account.
The targeted approach focuses resources on top source markets and high-yield segments. It supports regional dispersal through off-peak business events while generating GST and employment without expanding Crown debt.
The Government's Tourism Growth Roadmap sets a target of returning international arrivals to at least 3.89 million — 2019 pre-pandemic levels — by end-2026, and doubling the value of 2023 tourism exports by 2033/2034, according to MBIE.
