Potential passenger movement charge increase a threat to tourism success

Media reports of proposed increases to the passenger movement charge (PMC), which could see this tax increase by up to 400% for some travellers, pose a direct threat to the continuing success of Australia's $30 billion export tourism industry according to the Australian Tourism Export Council (ATEC).

Objecting to the potential tax increase, ATEC Managing Director Peter Shelley has stated "ATEC calls on the Abbott Government to uphold its election promise to keep the PMC off the table and recognise the growing contribution the tourism export industry makes to the national economy.

"Our industry is extremely concerned that barely 12 months into this new Government, there is a threat of a significant backflip on a core promise to our industry.

"The PMC is not an opportunity for the Abbott Government to make up for budget failings in other policy arenas - our growth success should stand on its merits and not be put in jeopardy by a broader revenue agenda."

Shelley said all the arguments against raising the PMC remained true, with a recognition internationally that border taxes are a retrograde step in growing international visitor numbers. When the UK introduced the Air Passenger Duty (APD) it had a noticeable detrimental impact and ultimately it was wound back.

Shelley added "Australia's tourism industry has worked hard to build recognition in the international market and the success of our dedication and targeted agenda is beginning to pay off with international visitor figures rising year on year.

"We do not want to see these figures stagnating due to a short sighted tax grab that fails to recognise the economic multiplier that export tourism creates for businesses across Australia.

"We call on the Abbott Government, and the specifically Ministers for Trade, Mr Robb and Immigration, Mr Morrison, to rule out this move now, and into the future.

"If this Government is truly committed to creating a stronger economy then now is the time to get behind the success of Australia's tourism industry."

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