The country is famous for its Maori culture and dramatic landscapes including glaciers, mountains, volcanoes and lakes.
However, its geographical location in the South Pacific and the long-distance airfares that come with it have often been a barrier to visitors.
“New Zealand's tourism recovery is lagging behind the rest of the world and this will further reduce our global competitiveness,” the association's chief executive, Rebecca Ingram, said.
New Zealand first introduced the tax in 2019, amid concerns about the impact of large numbers of visitors on infrastructure, the environment and local communities.
During the coronavirus pandemic, the country closed its borders for two and a half years and did not allow foreign tourists to enter until August 2022.
The country is struggling to recover to pre-pandemic visitor levels, with international visitors set to hit around 3 million in 2023., externalThat's about three-quarters of pre-pandemic levels.
Tourism Minister Matt Dooce insists the new tax will not be a major hurdle, with $100 representing less than 3% of most tourists' average spending in the country.
He said he was confident New Zealand remained competitive with countries such as Australia and the UK and that “New Zealand will continue to be an attractive tourist destination for many people around the world”.
Visitors from Australia and the Pacific do not have to pay any tax. Most visitors to New Zealand come from Australia, the United States, China and Fiji.
