Responding to the “surprise” move in last night’s budget to hike the impost on travellers departing Australia by air or sea to $80 per person, TTF CEO Margy Osmond slammed the call as a “major blow” to the tourism and travel sectors.
“We are outraged that the government has decided to make travel even more expensive when operators are already under enormous pressure from the ongoing fuel crisis and surging operating costs,” Osmond fumed.
“The government talks constantly about supporting tourism and growing visitation, yet the budget makes Australia more expensive to visit and more expensive for Australians to travel.”
Osmond said the six-month transition period announced is a concession by the government about how seriously the hike in the PMC will hurt the industry.
The TTF is now calling for the new rate to be frozen for at least four years to give the tourism and travel industry some certainty.
Budget papers show the increased PMC is estimated to boost revenue by $755 million over the five years from 2027. While industry groups have long called for more of the travel levy to be spent on border infrastructure, last night’s budget provided scant detail about how much work would be undertaken with the extra PMC revenue.
Osmond lambasted the lack of detail, stating it was “inconceivable” that none of the extra revenue will go to fund the urgent border modernisation.
Meanwhile, the Federal Government also announced the PMC will be changed to align to the departure date of the passenger, rather than the sale dates of tickets.
The Australian Airports Association (AAA) also lodged its disappointment about a lack of border modernisation, a body that has campaigned strenuously for more seamless processes at Aussie airports.
Cruise’s response by MYLES STEDMAN
Meanwhile, the Cruise Lines International Association said the price hike comes during a time when the country’s tourism industry is facing great challenges, pointing out Australia already charges travellers some of the highest fees in the world.
“This increase is particularly disappointing at a time when the cruise community has been highlighting Australia’s loss of cruise tourism to other regions, and it is a further blow to the country’s competitiveness,” the association stated.
“CLIA continues to support calls for Passenger Movement Charge revenue to be reinvested in the modernisation of Australia’s border processes for aviation and cruise,” it added.
The Australian Cruise Association supported CLIA’s calls for reinvestment of the money collected into modernising the country’s borders, while itself slamming the raising of the PMC.
“The increase to the Passenger Movement Charge adds further pressure to Australia’s competitiveness as a cruise destination at a time when global deployment decisions are finely balanced,” chief executive officer Jill Abel told Cruise Weekly.
“Even modest cost increases can influence where cruise lines choose to deploy ships, particularly in a highly competitive int’l market.”
Abel said the disappointment over the PMC increase is compounded by reduced funding for Tourism Australia, which plays an important role in building demand for cruise to Australia.
ACA has an MOU with Tourism Australia, which it uses to understand demand and convert it into guest bookings, Abel explained, supporting long-term deployment decisions.
