An increase to the Passenger Movement Charge (PMC) introduced into Federal Parliament today will push up travel costs, in a ‘major blow’ to hardworking Australians and international visitors, according to the Tourism & Transport Forum (TTF).
Legislation has been tabled today to increase the PMC, which is a tax paid by anyone aged 12 and up who’s departing Australia by plane or cruise ship, from $70 to $80 per person.
TTF CEO Margy Osmond said the increase will add further pressure to the tourism industry, at a time when operators are already facing massive cost pressures.
“Making international travel to and from Australia more expensive is the last thing we should be doing right now. This hurts our industry at the worst possible time,” Ms Osmond said.
“Travel is not getting cheaper. Airlines, tourism operators and the broader visitor economy is facing higher fuel, labour, insurance and other operating costs, while we are already seeing services reduced in parts of the network.”
“An $80 tax on every international departure will further push up the cost of travel and the viability of the services Australians rely on.”
Ms Osmond said the impact would be particularly significant for marginal air routes, where relatively small changes in passenger demand and operating costs can affect the viability of services.
“Connectivity matters. When routes become less viable, services can be reduced or capacity can disappear and Australians are ultimately the ones who pay the price through higher fares and fewer choices,” she said.
“The Government has set ambitious goals for tourism growth and for Australia to remain a competitive destination, but increasing the cost of international visitors to come here makes that job much harder.”
TTF appreciates Australian Border Force’s engagement with industry and its efforts to work with the sector on the implementation of the PMC increase, including transitional arrangements for carriers.
“We will continue to work constructively with Government to ensure Australia remains an attractive destination, supports a strong and sustainable tourism industry and remains affordable for Australians to travel and enjoy holidays,” Ms Osmond said.
“Tourism is one of Australia’s great economic opportunities. We need to make it easier and more affordable for people to travel, not keep adding to the cost.”
ENDS