PMC hike "blatant" cash grab and tourism "killer"

The suggested move to increase the Passenger Movement Charge (PMC) by some 400% has been labeled as a "blatant grab for cash" by the Federal Government according to industry body, Tourism & Transport Forum (TTF) who are looking to quash any changes.

“It was a key election promise from the Coalition that there would be no increase in the PMC and it is outrageous that the Abbott government could even be considering such a move,” TTF chief executive officer, Margy Osmond said.

Citing a report in The Australian last week which flagged the possible hike for visitors from Asia and Europe resulted in the TTF to call upon the federal government to rule out increases.

Australia's PMC departure tax is the world's highest for short haul travellers, and any increases risks making Australia a "lame duck in the global tourism market" according to Osmond.

“At a time when other countries are reducing or removing their departure taxes altogether, any rise in the PMC would act as a deterrent for potential visitors to Australia," she said.

“The idea that you would charge visitors from our biggest and fastest-growing markets more to come here is ludicrous and would be a tourism killer.

“It sends totally the wrong message to potential visitors and counters all the great marketing and promotional efforts of Tourism Australia and the very significant investment of airlines and tourism operators in those countries.

“The tourism industry rejects the assertion that any change to the PMC must be revenue neutral, because reducing the PMC and improving our visa processes will help attract more visitors to Australia who will spend money throughout the country, supporting jobs and businesses nationwide."

Singing a similar tune, ATEC managing director Peter Shelley said the Government is letting down the tourism industry if this proposed hike goes ahead.

“ATEC calls on the Abbott Government to uphold its election promise to keep the PMC off the table and recognise the growing contribution the tourism export industry makes to the national economy," Shelley said.

"The PMC is not an opportunity for the Abbott Government to make up for budget failings in other policy arenas – our growth success should stand on its merits and not be put in jeopardy by a broader revenue agenda.

"Australia's tourism industry has worked hard to build recognition in the international market and the success of our dedication and targeted agenda is beginning to pay off with international visitor figures rising year on year.

"We do not want to see these figures stagnating due to a short sighted tax grab that fails to recognise the economic multiplier that export tourism creates for businesses across Australia."

Osmond added that the policy on PMC should be based on further evidence from other countries which have seen significant growth in travel since reducing or removing their departure taxes.

“The Key government in New Zealand investigated a departure tax but ruled it out because its modelling showed it would significantly reduce arrivals," Osmond commented.

“With the right framework in place, tourism can attract more visitors, generate more spending and make an even bigger contribution to government coffers.

“Increasing the PMC will do the reverse.”