The Australian government’s decision to increase the Passenger Movement Charge by $5 is disappointing as tourism is Australia’s growth industry, and needs incentives to grow, not disincentives.
The Australian Hotels Association and Tourism Accommodation Australia have welcomed the decision by the federal government to reduce the tax on Working Holiday Makers from 32.5c to 19c along with a $10 million promotional fund aimed at revitalising the sector, but said the imposition of a $5 increase in the Passenger Movement Charge was counter-productive.
AHA and TAA made a strong submission to the Federal Government arguing that the tax hike would provide a major disincentive to working holiday makers at a time when the industry was already experiencing shortages, particularly in regional and remote areas,” said Chair of Tourism Accommodation Australia, Mr Martin Ferguson.
We would have preferred a complete removal of the tax increase, but this is offset by the reduction in visa charges and also the increase in the age limit for working holiday visitors.
In particular we welcome the decision to allow an employer with premises in different regions to employ a WHM for 12 months, with the WHM working up to six months in two regions. This will allow far greater flexibility for hotel groups who have to take into account seasonality.
We also welcome the commitment to the $10 million promotional fund, but the Government’s decision to increase the Passenger Movement Charge by $5 is disappointing as tourism is Australia’s growth industry, and needs incentives to grow, not disincentives.