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Tourism body fears backpacker backlash
Regional areas will be the biggest losers from the Australian federal government’s decision to increase the cost of working holiday maker visas by 28%, according to peak national body, Tourism & Transport Forum (TTF).
From January 1, 2013, the cost of a working holidaymaker visa will go up from AUD280 to around AUD360.
TTF chief executive John Lee said the hike would have an impact.
"This decision has been made because treasurer Wayne Swan apparently believes that backpackers don’t vote," he said.
"But they do vote – they vote with their feet and if we keep raising the cost of coming to Australia, we risk pricing ourselves out of the market.
"It’s wrong to assume people will keep coming regardless of cost – instead of coming to Australia as a working holidaymaker they will go somewhere else."
Lee said the government claimed that the increase would have a marginal impact, "but that is where you grow your market share – at the margins".
"Each fee increase is less money backpackers have to spend once they arrive, which means they visit fewer regional towns as they travel around Australia.
"And let’s not forget, people applying for working holidaymaker visas have to prove they have AUD5,000 Australian and they must have a return plane ticket, so they’ve already made a massive commitment.
"The strong Australian dollar makes a difference too, with a UK backpacker now having to save over UKP3,200, against UKP2,000 five years ago, while Europeans and Americans have to save 35% more," Lee said.
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