Britain's levy on departing passengers is starting to bite and hit numbers arriving in New Zealand.
The Queen's Diamond Jubilee and next month's London Olympics have also been blamed for the 19 per cent decline in visitors from Britain last month compared with May 2011.
Britain pushed up its Air Passenger Duty to £92 a passenger in April.
The increase means a family of four will have to pay close to $800 to leave the UK and fly to longhaul destinations such as New Zealand.
"If you're in a tough economic environment and considering a family holiday it will add considerable cost," an Auckland Airport spokesman said.