Compensation for export industries but what about tourism?

The Australian Tourism Export Council (ATEC) fears that Australian tourism industry will be disadvantaged as a result of the Federal Government's carbon price scheme providing no assistance or support to an export industry highly vulnerable to competitive pressures and already operating on slim profit margins.
ATEC Managing Director, Felicia Mariani, says the tourism industry spreads its wealth throughout Australia's regions, providing support to many regional communities and the carbon tax will increase operator costs, driving some out of business.
Mariani explained "the Australian tourism product is already seen as expensive with the high dollar and travel costs, this tax will add a further burden to our price competitiveness and make Australia an even less affordable place to take a holiday.
"The Government has outlined a number of compensation measures to support industries highly exposed to the carbon tax, but where is tourism?"
The ATEC Managing Director said tourism provided a considerable economic benefit throughout Australia with many regional communities highly reliant on the jobs it creates, adding "tourism contributes more than 4% to Australia's GDP, ahead of agriculture at 3% and is more than half the equivalent GDP of the mining industry; both of which are either exempt or compensated under this scheme.
"While the tourism industry contributes $25 billion to the export economy and contributes significantly to our GDP, it has been completely marginalised in this instance."
Mariani believes operators such as dive companies on the Great Barrier Reef will face particular hardship under the new fuel taxes, with no recourse to compensation.
"Operators who are highly fuel dependent will be hit hard, adding hundreds of thousands of dollars to their costs and the end result will see some going out of bus iness.
"Many of these regional tourism businesses already operate on slim profit margins and provide a product that is largely non-competitive in an international market and we must do everything we can to compensate them for any impact the carbon tax might make."
With the carbon tax applied to domestic, but not international flights, Mariani said this additional tax will place more pressure on the regional air market, forcing the closure of some routes with a flow on effect for regional tourism operators.
She concluded "we already face a challenge in engaging both our domestic and international travellers in the experiences our regional destinations have to offer.
"The additional impost on air fuel will threaten the viability of many routes, this tax may well be the straw that breaks the camel's back, and closures will have a significant flow on effect to regional tourism operators and the communities they support.
"I would urge the Government to consider the tourism industry in its compensation plans and ensure tourism operators, who are the lifeblood of many Australian communities, are kept in business."