Local tourism to be hit by Labor’s Budget triple tax whammy
15th May, 2012
Local tourism operators will be hit by tax increases and funding cuts announced in the Budget, Warren Truss, Federal Member for Wide Bay said today.“At a time when the tourism industry in Wide Bay is already doing it tough, the Gillard Labor Government’s carbon tax Budget adds further strain to the industry.
“The carbon tax, the increase in the Passenger Movement Charge (PMC) and the increased charges on Australian airports, will make holidaying in Australia more expensive.
“The increase to the PMC will mean an overseas family of four holidaying in Australia will pay $220 in PMC to visit Australia. By 2015/16 the Government’s total PMC — a tax on tourists — will be as high as $1.04 billion or around eight times the amount currently spent on marketing Australia.
“The same visitors will also pay the carbon tax on domestic air travel legs as well as in additional costs for accommodation, restaurants and leisure activities.
“The carbon tax is forecast to cost 6,400 jobs across the tourism industry nationwide and result in net revenue losses of $731 million.
“The additional $120 million in charges on airports, including the Australian Federal Police cost recovery measure announced in the Budget, will also impact on airfares.
Mr Truss said he was also concerned about the impact of the Budget cuts to Customs passenger processing at airports.
“In addition to rising costs, the Budget cuts to Customs processing poses a grave risk to Australia’s reputation as a holiday destination,” Mr Truss said.
“The funding cut to customs processing will see increased delays at all Australian international airports and this will impact Australia’s reputation as an enjoyable, hassle-free, tourism destination.
“Under the Rudd/Gillard Government, Australia has slipped from fourth to thirteenth place in the World Economic Forum Travel and Tourism Competitiveness Index rankings.
“The carbon tax, the increased PMC and increased airport charges will add to the pressures on the tourism industry and threaten our international competitiveness,” Mr Truss said.
“Tourism is a key driver of the regional economy and must be supported if it is to sustain local jobs.”
