In a recent move to give a boost to tourism investment in the Kiwi land, the New Zealand parliament has approved a new tourist tax, which will be effective from 1 July.

Most international visitors entering New Zealand for 12 months or less will be charged an additional fee of NZD 35 (USD 23). The new tax will be collected through the immigration system, the government said.

The new legislation enables the collection of the International Visitor Conservation and Tourism Levy (IVL) as well as digital processing of the New Zealand Electronic Travel Authority (NZeTA). The NZeTA—which is designed to improve the way travellers are assessed before they arrive in New Zealand to strengthen border security, according to the country’s immigration website—will be mandatory starting 1 October.

“Our international visitors will be contributing directly to the infrastructure they use.”

Australian citizens, permanent residents and people from many Pacific Island countries will be exempted from the IVL.

In a statement, Kevin Davis, tourism minister, New Zealand said: “The IVL is an investment in New Zealand. It is expected to raise over $450 million over five years, funding projects to ensure our country and our people get the best from tourism growth. Our international visitors will be contributing directly to the infrastructure they use and helping to protect the natural places they enjoy.”

New Zealand experienced a nearly 4% in international arrivals last year, according to data from Tourism New Zealand.