On the back of a visit to Port Douglas by Tourism Australia who announced plans to double tourism expenditure growth over the next 10 years, the Labor government looks set to increase charges for air travellers.

According to a Travel Today report, if reelected Labor will bump up the Passenger Movement Charge (PMC) which could impact an already struggling tourism industry.

The reason behind the increase is to improve the Australia's quarantine and biosecurity measures, set to cost $260 million per year, and recommended by an independent report to the government named the "Beale Review".

Executive director of the Tourism and Transport Forum, Brett Gale, said the PMC “massively over- collects the cost of the customs, quarantine and immigration services it purports to finance”.

The main concern from tourism bodies is that the increased charge will lead to a rise in airfares for overseas tourists, and potentially affecting their decision to travel to Australia.

The PMC is currently $47 per passenger and revenue from the charge reached half a billion dollars in 2008/09.

BREAKING NEWS

The Labor Government has denied it has plans to increase the PMC, accusing the Coalition of a scare campaign.

Tony Burke, minister for agriculture, fisheries and food, said Labor would not raise the tax, despite a policy document stating the party has agreed “in principle” to a recommendation to “adjust” the charge to fund biosecurity measures .

“The Gillard Government does not have a policy to increase the Passenger Movement Charge and has no such plans to introduce such a policy," he said.