Major Visa Fee Hike Starting October 2024

The New Zealand government is set to introduce significant increases in visa fees starting from October 1, 2024. This move will affect nearly all visa categories, marking a major shift in the country's immigration policy. Immigration Minister Erica Stanford revealed that these changes are designed to create a more sustainable immigration system by shifting the financial burden from taxpayers to visa applicants.

The latest report from ICEF Monitor suggests that these adjustments will reduce the need for public funding by over NZ$563 million (US$338 million) over the next four years. Minister Stanford emphasized that the current system heavily relies on taxpayer subsidies, stating, “We are shifting the cost to those who benefit from the system, ensuring it becomes self-funding and more efficient.”

Despite the increase in fees, Minister Stanford assured that New Zealand’s visa costs will remain competitive when compared to Australia and the United Kingdom. This is expected to help maintain the country's appeal for students, workers, and tourists alike.

Surge in Overseas Visitor Arrivals

New Zealand has experienced a notable increase in overseas visitor arrivals, with the year ending December 2023 seeing a rise to 2.96 million—a significant jump of 1.52 million from the previous year. Noteworthy growth was observed in arrivals from Australia, up by 429,000 to 1.26 million, and from the United States, which increased by 227,000 to 337,000.

In the year ending March 2023, international visitors totaled 2,199,073, marking an impressive 858.7 percent increase (1,969,703) following a 335.3 percent rise in the previous year. Visitors from Oceania alone surged by 545.6 percent (1,044,584), building on an 800.6 percent increase the year before.

Impact on Student Visas

One of the most significant changes is the doubling of student visa fees from NZ$375 to NZ$750. This move mirrors a similar decision by Australia, which recently doubled its student visa application fees to AUD$1,600. Despite this increase, New Zealand's student visa fees will still be considerably lower than those in Australia, costing just over 40% of an Australian study visa application.

New Zealand’s Growing Appeal Among International Students

In a positive development for New Zealand’s education sector, the country saw a remarkable increase in international student enrollments in 2023. According to Education New Zealand (ENZ), there was a surge of 69,000 students compared to the previous year, marking a 67% increase over 2022. This brings the total number of international students to 69,135, representing 60% of the enrollments seen in 2019 before the COVID-19 pandemic impacted global mobility.

China continues to be the largest source of international students in New Zealand, contributing 35% of total enrollments. India follows as the second-largest market with 17%, while Japan, South Korea, and Thailand account for 10%, 5%, and 4%, respectively. Other countries contribute less than 4% each.

Looking Ahead

As New Zealand prepares for these changes, the impact on the visa system and international student enrollments will be closely watched. The fee increases aim to enhance the sustainability of the immigration system while maintaining the country’s attractiveness as a destination for students and visitors from around the globe.