New border security system will cost $14m to run and could cause travel chaos

Tuesday, 12 March 2019

The Tourism Export Council is still waiting to find out what will happen to passengers who turn up at check-in without an electronic travel authority from October.

A new border screening system will cost more than $14 million a year to run and there are concerns its introduction has potential to cause travel chaos.

From October 1 most overseas visitors will require an electronic travel authority (ETA) that will also be used to collect a new $35 a head tourism and conservation levy expected to raise between $57m and $80m a year.

ETAs will cost travellers $9 if they apply via mobile phone, or $12 through the web, but New Zealand and Australian passport holders will be exempt, and they won't have to pay the levy either.

A just released Cabinet paper suggests introduction of the levy and ETA associated processing fees could see visitor numbers drop by about 15,000 in 2021, reducing visitor spending by $51m.

* Prepare for a lolly scramble over new visitor levy money

* Tourism industry wants a say on how a new visitor levy will be spent

About one million visitors traveling on Australian passports won't pay a new $35 a head tourism and conservation levy.

* Tourism industry unhappy that Aussies will get off paying proposed visitor levy

* Dear tourists: It's time to pitch in**

A just released Cabinet paper suggests introduction of the levy and associated processing fees could see visitor numbers drop by about 15,000 in 2021, reducing visitor spending by $51m.

But industry sources are concerned about the short time frame for introduction of the new system and the potential for lengthy delays if cruise or airline passengers turn up at check-in without an ETA.

Plans to require electronic travel authorities for cruise passengers and crew members have been brought forward and that could delay ships leaving port.

Tourism Industry Aotearoa chief executive Chris Roberts said it was good to finally get some detail about the ETA because overseas travel agents and tour operators needed the information as soon as possible.

'There are serious risks to New Zealand's reputation if the introduction of the ETA is rushed or poorly implemented. We don't want our visitors to face unnecessary barriers or feel they are not being welcomed.'

Tourism Export Council chief executive Judy Chen said Immigration NZ officials told her they ideally wanted passengers to obtain ETAs at least 72 hours before travelling, and the agency was talking to airlines and airports about the resources needed to handle those last minute applications.

'That will happen, people will show up not realising they need one.'

Arrivals from Australia hit almost 1.5 million last year, and although Australian citizens are exempt from ETAs, Australian permanent residents coming here will need to have them.

Chen said that highlighted the need to get the word out to the travel trade well in advance.

'We will need very good comms to ensure there is high level of awareness, otherwise there is very little time to process last minute ETAs with short haul flights.'

The initial plan was to delay introduction of ETAs for cruise ship passengers until 2020, but that has been brought forward to October even though an automated system to check that passengers or crews have ETAs does not exist, and is unlikely to be implemented across the board by the start date.

NZ Cruise Industry Association chief executive Kevin O'Sullivan said it already took time to board 3500 passengers and anything that slowed down embarkation further was a concern for cruise lines.

'If passengers don't have the documentation, we wouldn't like to see them turned away.'

When Tourism Minister Kelvin Davis announced the new levy last September it was expected to be in force by mid year.

But the Cabinet paper just released on the Ministry of Business Innovation and Employment (MBIE) website said regulations would need amending so ETA applications could start on July 1, becoming compulsory from October.

About 15 per cent of travellers are expected to turn up at check-in without having paid, and that is predicted to significantly increase processing costs at least for the first year of operation.

An MBIE report on costs said options were being considered to introduce for an urgent processing fee at a later date if needed.

Immigration NZ general manager Stephen Dunstan said they had already talked to 35 airlines flying here to avoid delays at check-in, and a global campaign would kick off in May to educate offshore markets.

He said the ETA would improve border security, reduce border clearance times, and bring New Zealand in line with international standards.

*An earlier story incorrectly stated it would cost $14m a year to collect the tourism levy..