EconomyNew Zealand hikes tourist tax as residents flee for better jobs

New Zealand hikes tourist tax as residents flee for better jobs

New Zealand is often referred to as "paradise on Earth." Filmmakers, billionaires—many of whom have built shelters on the islands—and ordinary tourists love the picturesque archipelago. However, residents are leaving in search of a better life.

It is considered a paradise on earth. But young people are leaving en masse.
It is considered a paradise on earth. But young people are leaving en masse.
Images source: © Adobe Stock | Nate Hovee
Adam Sieńko

6:21 PM EDT, September 8, 2024

Australia's neighbor has become such a popular destination that the authorities recently decided to increase the tax on foreign tourists. The New Zealand government explains this step by citing visitors' negative impact on the natural environment and local infrastructure. The fee will increase from 35 to 100 New Zealand dollars (approximately 21 to 62 USD).

While visitors are thrilled with the landscape, residents increasingly decide to leave the archipelago. CNBC writes about "economic refugees." The service noted that of the 130,000 people who left New Zealand last year, 80,000 were citizens. This is 70 percent more than before the pandemic.

Moreover, young people have the strongest desire to emigrate. Half of the emigrants are residents aged 20-39, with the largest percentage consisting of people between 25 and 29 years old.

New Zealanders are becoming poorer

CNBC's interviewees blame worsening job market conditions. "In New Zealand, you feel limited in terms of job opportunities and what you can gain in work experience," Wilson Ong, a 32-year-old in the fashion industry, told the service.

After the pandemic, the islands' inflation increased to over 7 percent. In the last quarter, it dropped to 3.3 percent. However, experts point out that the rise in the cost of living was not accompanied by a sufficiently high increase in wages. 5 million consumers across the country felt the decline in purchasing power.

"I think a feature of a bad economy is a lack of opportunity to raise your wages relative to the cost of living," Wilson Ong stated. Ong himself is currently looking for work outside the country.

Australia welcomes emigrants with open arms. Public sector employees, construction workers, and engineers are particularly sought after.

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