AUSTRALIA: Tourism Industry Affected By Higher Passport New Airport Fee

Australian passports will rise in price by $20 from January 1, 2017.

TOURISM will generate hundreds of millions of dollars for the Federal Government through a range of budget initiatives that have disappointed industry members.

Although there are some positives for the “supergrowth sector” such as tax cuts for small business operators, tourism officials lamented the lack of measures to foster growth.

In a series of blows for the industry:

— the cost of an Australian passport will jump $20 from January 1, 2017 to $274 raising $173 million over four years

— trial visa arrangements for certain countries including a user-pays fast track service will raise $1.5 million over four years

— backpackers will pay 32.5 cents on every dollar earned in Australia from July 1

— airport operators will be charged a commercial fee to provide “premium border clearance services” for international air passengers, initially at Sydney, Melbourne and Perth Airports

— Tourism Australia’s funding trimmed to $140 million from $144 million

Australian Tourism Export Council Managing Director Peter Shelley said they were very disappointed the planned backpacker tax had not been wound back.

“We’ve been working with government to try to reduce the percentage (from 32.5) and we’ve seen no response to that in this budget,” said Mr Shelley.

“It’s not competitive with other countries and makes a working holiday in Australia much less attractive.”

Tourism and Transport Forum CEO Margy Osmond said she hoped successive budgets delivered an increase to Tourism Australia’s funding.

“We’re pretty disappointed there’s been no action on the Tourist Refund Scheme and the backpacker tax, and we will be pushing those arguments during the election campaign,” said Ms Osmond.

“Any increase in taxes on airports is not good news either but the concept of premium processing is a good one.”

On the upside, $26.2 million has been earmarked over four years to establish permanent border clearance services at Townsville and Sunshine Coast airports in Queensland.

The move should allow for regular international services out of the airports, that currently operate seasonal flights into either Bali or Auckland.

There is also $115.1 million over two years for works at the Western Sydney Airport site at Badgerys Creek.

The sum includes $26.2 million to “undertake concept design for the provision of rail services

through the site”.

Three states can also look forward to more money for projects that encourage tourists to visit a destination, such as the Melbourne Cricket Ground rooftop walk.

Almost a third of the $15.2 million “demand driver infrastructure fund” will go to New South Wales ($4.8 million), Queensland will score $2.9 million and Victoria $2.8 million.

Allocations for other states and territories will remain unchanged.