Aussie travel tax hike slap in face

Aussie travel tax hike slap in face

The Australian Government’s decision to increase its passenger departure tax by 17% to NZ$71 is a slap in the face for both countries’ tourism industries, says Tourism Industry Association New Zealand (TIA) Chairman Norm Thompson.

“The increase will be a barrier to the almost 1.2 million Australians who travel to New Zealand annually,” says Mr Thompson. “Australia is our largest and most valuable visitor market and our aim is to encourage travel here.”

He says the Australian Government’s recent budget announcement that it was increasing its passenger movement charge (PMC) from 1 July 2012 by A$8 to A$55 comes at a time when TIA and the Tourism & Transport Forum Australia (TTF) have been lobbying for the tax to be cut.

“We have been pushing for a seamless border experience that will increase the flow of trans-Tasman travel, with streamlined border processing and ‘mates rates’ to halve the PMC for Kiwis and Australians.

“Instead the Australian Government has imposed this hefty increase on a tax that is already high. A family of four Aussies holidaying in New Zealand will have to pay NZ$280 departure tax just to leave their country.”

Mr Thompson says he has briefed Prime Minister and Minister of Tourism John Key on the potential impact of the PMC increase and says Mr Key has advised he will take it up with his Australian counterpart Julia Gillard.

“We are pleased the Australian government will roll out additional SmartGate automated passport control machines at its international airports. This is something TIA and TTF have been advocating for as it will make travel easier, but the negative impact of the PMC increase will far outweigh any benefits our tourism industries might derive from this.

“Kiwi and Australian holidaymakers will give the Australian government an additional NZ$23.8 million in 2012-13 as a result of the PMC increase. While they have said some of the money will go towards Tourism Australia, our experience with the UK’s airport departure tax shows unfair tax grabs such as this disappear into the government coffers.”

Mr Thompson says increased travel flows between New Zealand and Australia would benefit both nations economically and TIA and TTF will fight the PMC increase.

Making travel easier is a key priority for government action in TIA’s Tourism Future Statement 2011-14: The Visitor Economy – Creating Wealth.
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