Tourism tax rise concerns

Industry wary of increase

For jetsetting travellers, last week’s federal budget held a nasty little surprise with an increase in the passenger movement charge applied to international flights.

The decision to raise the fee for departing international flights from $60 to $70 was met by pushback from the Queensland Tourism Industry Council with others in the tourism sector wary of the ‘tourist tax’.

QTIC boss Brett Fraser said the industry would push to have any further increases frozen over fears it could deter international visitors.

“If these measures have a compounding effect and they do translate to a slower recovery of international markets, it will have an impact on the employment market.”

Quicksilver Group general manager Tony Baker was less fazed by the rise in the charge but was interested in where the extra revenue would be allocated.

“The tourism industry has had a tough couple of years and we are still in the recovery stage and while we would not like to see additional costs attached to the industry, this rise seems to be in line with inflation, it shouldn’t have a major effect,” Mr Baker said.

“We would certainly love to see any additional funds gathered through the increase in the movement charge go back into tourism promotion especially in the international market.

“We have seen the domestic market growth start to slow down and we are still waiting on the international market to rebound in full force.

“We have still got to rebuild and have to be able to compete with other destinations for the return of visitors and our share of the market.”

Increasing the PMC to $70 for each traveller leaving Australia is expected to raise $1.3bn in 2024/25.

Senator Nita Green said the increase was modest and confirmed the government was committing money into Far North tourism.

“The Passenger Movement Charge has not changed since 2017 and won’t change until July 1, 2024, when the modest increase of $10 per person will be broadly in line with inflation over that seven-year period,” Senator Green said.

“I am proud to say that our Government committed $15m to TTNQ in our October Budget to help demand for new aviation routes, boost the global profile of the Great Barrier Reef as well as trade and marketing engagement.

“We also have launched a $15.1m Great Barrier Reef initiative to help tourism businesses that operate along the Reef.”

Earlier this week Tourism and transport forum CEO Margy Osmond was much more alarmed when speaking with News Corp saying the tourism industry could not be a “cash cow”.

Tourism Minister Don Farrell said the government was investing strongly in the sector including funding for Tropical North Queensland, The Great Barrier Reef and the Olympic Games.