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Cost of living and high airfares: The case for NZ travel subsidies – Editorial
NNew Zealand

Cost of living and high airfares: The case for NZ travel subsidies – Editorial

  • December 26, 2025

It is time we changed tack and provided New Zealanders with direct financial incentives to become backyard travellers.

Affordability has been singled out in recent years as the top obstacle for domestic tourism. The cost of holidays, especially airfares, were outed as deterrents.

Airfares don’t appear to be getting cheaper as a lack of market competition lives on. In fact, Airports Council International (ACI) claimed New Zealand’s domestic airfares have shot up 63% in six years, faster than any other country.

The high costs of daily life mean households are clamping down on holiday spending and instead prioritising other financial commitments.

We know backyard travellers will show up with their suitcases in hand if given a nudge.

When the Covid pandemic closed the country’s borders in 2020, Tourism NZ shifted its gaze from international visitors to domestic tourism.

In May 2020, Tourism NZ launched the , campaign to encourage Kiwis to explore the country and support local tourism businesses.

And 63% of New Zealanders responded to the call by trying a new activity or visiting a new destination.

The call to action was lauded for generating an additional $1.1 billion in domestic tourism spending.

That success was all without any actual direct financial incentives. Imagine what we could achieve if vouchers or travel subsidies were on offer.

Canada appears to be leading by example. It offers a Canada Strong Pass that provides free access to national parks, historic sites and museums, as well as discounts on camping, free youth rail travel and reduced fares for 18- to 24-year-olds between December 12 and January 15.

The pass was about making exploring the country easier for everyone, especially youth and families.

Canada is actively reducing cost barriers for locals, while New Zealand depends on awareness campaigns and people having the money to travel in the first place.

Back in New Zealand, we are grateful to the tourist attractions making their own moves to draw in local visitors. Te Papa charges international visitors $35 per adult while New Zealand residents enter for free. On most of the Department of Conservation’s Great Walks, international visitors pay significantly more for huts and campsites than Kiwis.

While it is fair to argue that international tourists spend far more per trip than locals – which supports jobs and regional economies in ways domestic travel would struggle to match – couldn’t we at least try?

Times are changing, uncertainties beyond our control exist, and, like real intrepid travellers, let’s dip our toes into something new.

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