Tourist tax hike will slow return of visitors
10 May 2023|
Australia’s peak body for tourism organisations expresses disappointment with the government’s decision to increase the passenger movement charge by $10 in the federal budget.
“This increase is a short-sighted move that will slow down the return of international tourism arrivals, which is ultimately harmful to the Australian economy,” Australian Chamber – Tourism chair John Hart said.
“The country’s price competitiveness is already low, ranking 116 out of 117 economies, due to imposts such as the passenger movement charge, making Australia the most expensive in the world in terms of passenger taxes.
“Australian Chamber – Tourism is calling for a freeze on any further increases in the passenger movement charge for the next five years, and for the revenue collected from the charge to be allocated towards covering the costs of moving passengers in and out of the country.
“The benefits of this collection should be directed towards improving the passenger experience, which will increase the likelihood of return visitation and benefit tourism as a whole.”
Australian Chamber – Tourism is pleased to see that Tourism Australia was able to retain a substantial budget in a tight financial environment.
“This is crucial in a time when every country is vying for high-yield visitors, and Tourism Australia needs to be properly resourced to support these efforts,” Mr Hart said.
“Additionally, a commitment to the Business Events Bid Fund is essential to support events that attract international visitors, as they are high-spending visitors that contribute significantly to the visitor economy.
“International visitors are the lifeblood of Australian tourism, and it is the high-yield leisure visitors that will provide the greatest benefit to the national economy in the long term. By supporting tourism, Australia can become a leading destination again and a significant contributor to the country’s economic success.”
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