DestinationsIndustry leaders unite to oppose the move in departure tax hike on passengers.

Tax hike angers Australia’s tourism industry

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Australia’s tourism industry says an increased tourism tax will stall recovery from the pandemic.
Australia’s tourism industry says an increased tourism tax will stall recovery from the pandemic. Photo Credit: Adobe Stock/OzPhotographer

Tourism industry leaders in Australia have united in opposing a federal government move to increase passenger movement charge (PMC) - the so-called “tourist tax” - from July 2024.

The current A$60 (US$40) tax on every airline passenger leaving Australia will be increased by A$10, a hike that Tourism and Transport Forum (TTF) chief executive Margy Osmond says will make it more expensive for international tourists to come to Australia, “at a time when we’re desperately trying to attract more visitors, with Australia’s international tourism levels still below pre-Covid levels”.

Australian Federation of Travel Agents chief executive Dean Long said that “now is not the time for additional taxes” as travel remains 30% below pre-Covid levels.

A letter of protest sent to the government was also signed by Joel Katz, managing director of Australasia Cruise Lines International Association.

The letter claimed the increase in the PMC was “disheartening for our sector that has suffered more than most during Covid, combined with already one of the highest departure taxes in the world”.

The move by the federal government to lift the departure tax comes at a time when the Victorian state government in Australia is considering a move to tax landlords who let their properties out via short-term rental platforms like Airbnb.

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