Tourism sector unfairly hit with passenger tax increase
May 9, 2023 – Australia’s travel industry has been dealt an unfair blow by the increased Passenger Movement Charge (PMC) announced in the Federal Budget, hampering its efforts to drive a revival in international tourism.
Cruise Lines International Association (CLIA) said the increase in the PMC rate from $60 to $70 per person was an unreasonable added cost at a time when Australia’s travel community was working hard to restore international visitation and support cruising’s recovery.
CLIA Managing Director in Australasia Joel Katz said cruising was playing a vital role in Australia’s tourism recovery and that it should be supported, not taxed.
“Australia already charges international travellers some of the highest fees in the world, and this only makes things worse,” Mr Katz said. “This is yet another cost for Australian cruise fans and overseas visitors, creating a disincentive that affects countless Australian businesses like travel agents, tour operators and industry suppliers.”
CLIA has supported the position of other industry bodies including the Tourism & Transport Forum (TTF), the Australian Federation of Travel Agents (AFTA) and the Australian Airports Association (AAA) in opposing an increase to the PMC.
“This increase will undermine the cruise industry’s efforts to revive its $5 billion-a-year contribution to the national economy and its ability to bring economic opportunities to communities around the country,” Mr Katz said.