The Tourism & Transport Forum (TTF) has warned that Aussie travellers heading overseas and international visitors will be forced to pay more, following the Federal Government’s decision to blindside the tourism industry with an increase to the Passenger Movement Charge (PMC) in tonight’s Federal Budget.
TTF CEO Margy Osmond has slammed the decision to increase the PMC, which is a tax paid by anyone departing Australia by plane or cruise ship, from $70 to $80 per person as a ‘major blow’ to the sector.
“This is an absolute shocker for the tourism industry. We’re outraged that the Government has decided to make travel even more expensive, when operators are already under enormous pressure from the ongoing fuel crisis and surging operating costs,” Ms Osmond said.
“The Government talks constantly about supporting tourism and growing visitation, yet tonight’s Budget makes Australia more expensive to visit and more expensive for Australians to travel.”
“For a family of four, that’s $320 they’ll soon have to pay in tax as part of their airfare. Given how much uncertainty the industry is already facing, this could really be the straw that breaks the camel’s back.”
Ms Osmond said it was deeply frustrating that there had been no consultation with industry before the PMC increase was announced.
She said the six-month transition period the government has made available is their recognition of how seriously this will impact the industry.
She called for the new rate to be frozen for at least four years over the forward estimates to give the tourism industry some certainty.
She said the PMC had increasingly become a revenue grab for Treasury, with little evidence the billions collected from travellers were being reinvested back into tourism, aviation or border infrastructure.
“It’s inconceivable that none of the extra revenue that’s going to be collected from this tax hike looks set to fund the urgent border modernisation we have been calling for,” Ms Osmond said.
“It’s particularly disappointing when we’ve worked so constructively with Government over the last 12 to18 months on developing a seamless border, which would give every Australian a better, safer, more secure experience.”
“Right now, we have airports around the country that are planning their own improvements and they need a signal in terms of how they spend their money.”
“It is urgent that we escalate the really solid work done over the last year by sections of the government with the industry and deliver a modern seamless border that so many other countries take for granted.”
ENDS