THE tourism sector has been unfairly hit with an “unreasonable” passenger tax increase, Cruise Lines International Association (CLIA) believes. The trade alliance yesterday joined with the rest of the Australian travel industry in calling for a freeze on the passenger tax (CW yesterday), hopes of which were dashed when a...
THE tourism sector has been unfairly hit with an “unreasonable” passenger tax increase, Cruise Lines International Association (CLIA) believes.
The trade alliance yesterday joined with the rest of the Australian travel industry in calling for a freeze on the passenger tax (CW yesterday), hopes of which were dashed when a $10 increase from $60 to $70 was announced last night in the federal budget.
Treasurer Jim Chalmers (pictured) said the increase will take effect from Jul 2024.
CLIA believes the travel industry has been dealt an “unfair blow” by the increase, which it said will hamper efforts to drive a revival in international tourism.
Managing Director Joel Katz said cruising was playing a vital role in Australia’s tourism recovery, which he believes should be supported, not taxed.
He warned increasing the passenger movement charge will only result in more expensive fares for local travellers and international visitors.
“Australia already charges international travellers some of the highest fees in the world, and this only makes things worse,” Katz said.
“This is yet another cost for Australian cruise fans and overseas visitors, creating a disincentive that affects countless Australian businesses like travel agents, tour operators and industry suppliers.”
“This increase will undermine the cruise industry’s efforts to revive its $5 billion-a-year contribution to the national economy and its ability to bring economic opportunities to communities around the country.”
CLIA had supported the position of other industry bodies, including the Tourism & Transport Forum, the Australian Federation of Travel Agents, and the Australian Airports Association, in opposing an increase to the PMC.
The charge is imposed on everyone departing the country, including nationals, with Katz saying CLIA’s agent members are telling the Association now is not the time to put an additional burden on travellers.
