Passenger charge a blow to tourism



Monday 21 May 2012

Passenger charge a blow to tourism

Cairns Airport is fully justified in its bid to stop an increase in the departure tax for visitors, the latest blow to the tourism industry, says Federal Member for Leichhardt Warren Entsch.

Cairns Airport is banding together with other international airports in Australia and tourism bodies to battle an increase in the Passenger Movement Charge (PMC) from $47 to $55 per person.

Mr Entsch said that while the amount may seem minor in terms of an overall ticket price, when combined with the effects of a cut in Customs funding and higher fees for Australian Federal Police services it is all serving to put extra pressure on the airport’s resources.

“This is something that was totally unexpected,” he said.  “It’s the absolute worst time to be doing it when we’re trying to look at the recovery of the tourism industry.”

Mr Entsch said the Coalition will not support the tourism tax increases and budget cuts announced in last week’s budget. 

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He added that he fully supported the Tourism and Transport Forum, which has started lobbying crossbench MPs in the House of Representatives and Green MPs in the Senate to stop the increases being passed through parliament.

“The airport’s concerns are fully justified. The funding cut to customs processing is going to result in more delays at all Australian international airports, not just Cairns, and this will impact on our reputation as an enjoyable, hassle-free, tourism destination.

“It’s also very clear that the carbon tax, the increase in the PMC and the increased charges on Australian airports are going to make holidaying here significantly more expensive.”

The increase in the PMC will mean an overseas family of four will pay a total of $220 to visit Australia. 

Mayor Bob Manning agreed with Mr Entsch saying the increase doesn't make good business sense.

"Why would you do that? I remember a bloke, Sir Frank Moore, who once said 'Does anyone stand outside a Myer's store and ask you for $5 to enter the store?' If they did you wouldn't go in.

"We're strangling ourselves with some of this stuff," he said.

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