Could the new tourism levy create travel chaos?

Come October, overseas visitors to New Zealand will have to pay a $35 tourism and conservation levy to enter the country.

However, a cabinet paper suggests this might be a costly tax to implement, with revenues predicted to be around $57-80m per year, but at a cost of more than $14m to implement.

We have to ask, is it worth it?

NZIER Principal Economist Christina Leung spoke to The AM Show.

Watch the video.