Australia’s Passenger Movement Charge is set to increase from $70 to $80 per person under legislation introduced to Federal Parliament.
The move has drawn criticism from the Tourism & Transport Forum (TTF) concerned about the impact on travel costs and international competitiveness.
The charge applies to passengers aged 12 and over departing Australia by air or cruise ship.
Margy Osmond, TTF CEO, said the increase would add pressure to travellers and tourism businesses already facing higher operating costs.
“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.”
TTF is particularly concerned about the potential effect on marginal air routes, arguing that increases in passenger costs and operating expenses 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,” Ms Osmond said.
The organisation also questioned how the increase aligns with the Government’s tourism growth ambitions and efforts to maintain Australia’s competitiveness as an international destination.
TTF said it would continue working with the Government and Australian Border Force on implementation of the increase, including transitional arrangements for carriers.
