The Australia tourism industry has slammed the upcoming rise in the Passenger Movement Charge.
The increase in PMC by $10 to $70 was included by Treasurer Jim Chalmers in this week’s Budget.
The increase is effective from July 2024 and will generate about$1.3 billion.
The Tourism and Transport Forum (TTF) CEO Margy Osmond said it will add to already high airfares at a time when the industry is struggling to fully bounce back.
“This will make it even more difficult for tourism to bounce back, as cost of living pressures.”
“It will also make it more expensive for international tourists to come to Australia.”
The industry has long described the fee as a stealth ‘tourism tax.’
It was ‘extremely disappointing,’ the Australian Federal of Travel Agents (AFTA) said.
AFTA chief Dean Long said air seat capacity is still about 30% down on 2019 levels and this will prolong the wait to a full recovery.
The increase was also criticised by Joel Katz, MD of CLIA Australasia.
“Australia already charges international travellers some of the highest fees in the world, and this only makes things worse,” Katz said.
