New Zealand's Tourism Industry Pessimistic About UK's Travel Tax

The current tax for departing from the UK and traveling to New Zealand sits at around forty pounds. But by 2009 the tax will increase to fifty five pounds and will again increase to eighty five pounds in 2010. This increase in departure tax has worried the New Zealand tourism industry as visitors from the UK make up the largest group of tourists to New Zealand. Adding an approximate three hundred and sixty pounds to a traveling family. The current cost for departing the UK stands at around two hundred and thirty pounds

This announcement brings particular worry as New Zealand is the host for the 2011 world cup, and an increase in departure tax may deter English tourists from visiting New Zealand.

New Zealand's Prime Minister John Key also Minister of Tourism, attempted to outline that negative effects of the imposed tax. Key met the British Prime Minister, Gordon Brown on a trip to London to unveil a giant rugby ball to promote the 2011 world cup.

The tax was aimed to target environmental issues, but many believe it will just go into government coffer.

The New Zealand tourism industry has already experienced a major hit as numbers have decrease over the past two year, most probably due to the world economy. Further decreases in the industry could also increase unemployment as one in ten New Zealanders are employed by the industry.

The announcement caused a fall in Tourism Holding LTD., New Zealand's largest tourism company.