Lobby group opposes departure tax hike

Australia’s peak tourism lobby group has welcomed coalition plans to oppose indexed increases in the departure tax.

The Gillard government wants to increase the cost of departing Australia from $47 to $55 from July 1, and for it to rise with the CPI each year.

Opposition tourism spokesman Bob Baldwin says the coalition will seek to block the indexed rises, because it would hurt the tourism industry.

“This government doesn’t understand what drives the tourism industry,” he told reporters in Canberra on Tuesday.

“It is a very price point sensitive market, and all of these little costs do nothing to excite people to come to Australia.”

The increase in the passenger movement charge is expected to raise $610 million over four years, of which $61 million will go towards promoting Australia in growing markets in Asia.

But Mr Baldwin said the $61 million would only just make up for cuts to the sector in the 2012/13 federal budget.

Tourism and Transport Forum chief executive John Lee said the increase would have “a very negative impact” on his industry.

“What will that say to international visitors that come to our country? It will say this ‘welcome to Australia, you will pay more and you will wait longer’.

“That is not the right way to introduce someone to our beautiful country.”

A bill to amend the charge is before the House of Representatives.

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