The Federal Government’s announcement last week to raise the Passenger Movement Charge (PMC) came as a devastating blow to the tourism industry, says Tourism & Transport Forum CEO Margy Osmond (left). But what will happen next is even more important.
Firstly, let’s stop calling it the PMC, because most Australians don’t really know what that is. This is a holiday tax and a business tax. A tax on Australians travelling overseas and on international visitors choosing to come here.
And now it’s going up again.
From next year, every traveller aged over 11 who leaves Australia by plane or cruise ship will pay $80. For a family of four, that’s $320 added to the cost of a trip before they’ve even reached the airport.
At a time when the tourism industry is already under pressure from higher fuel prices, more regulation, rising operating costs and global uncertainty, this is the last thing Australia needed.
The increase itself is not only frustrating and costly, it’s the message it sends.
Governments love talking about the value of tourism. They celebrate visitor numbers, major events and visitor spending. They praise tourism operators for supporting jobs and driving economic activity across the country. But when the Federal Budget rolls around, our industry too often gets treated like a convenient ATM.
Need to top up the Budget bottom line? Increase the charge passengers quietly pay inside their airfare or cruise tickets and hope nobody notices.
The problem is our industry notices. Travellers notice. And so do our international competitors.
Australia is already one of the most expensive and geographically challenging tourism destinations to reach in the world. We are proudly long-haul. But that also means we are vulnerable every time costs increase. Every extra fee matters because travellers today have more choice than ever before.
This idea that ‘it’s only another $10’ completely misses the point.
Operators are already absorbing huge increases in labour, insurance, fuel and energy costs. Travellers themselves are facing cost-of-living pressures. International aviation remains fragile in parts of the world.
And now government has decided this is the moment to make Australia even more expensive.
What makes this even harder to swallow is that none of the additional revenue has been allocated to fund the very improvements our industry has been calling for.
Given the Government is pressing ahead with this increase, the absolute bare minimum expectation is that the money gets reinvested into fixing Australia’s outdated border.
Because right now, we are charging travellers more while still handing them a paper arrival card and forcing them into queues that belong in another decade.
If we’re asking people to pay more to cross the border, could we at least give them a better experience while they’re doing it?
First impressions matter
At Singapore’s Changi Airport, travellers can pass through immigration in as little as 10 seconds, using automated, biometric lanes with facial and iris recognition.
Some of Australians’ most loved holiday spots like Bali and New Zealand are also embracing more digital, streamlined arrivals.
Meanwhile Australia, one of the world’s great tourism destinations, still has travellers searching for pens on incoming flights.
That is not world-class. It’s not efficient. And it’s certainly not the kind of arrival experience we should be delivering ahead of the Brisbane 2032 Olympic and Paralympic Games.
The industry has been working constructively with government on seamless borders for well over a year now. We know the technology exists because we’ve already trialled it successfully. Airports are investing billions in terminals and infrastructure. The private sector is stepping up.
What we need now is government to match that ambition.
Digitising the Incoming Passenger Card should be the obvious first step. It’s practical, achievable and long overdue. More importantly, it would send a signal that Australia is serious about modernising the traveller experience rather than simply taxing it.
Because this is about far more than convenience.
First impressions matter. The moment an international visitor arrives in Australia shapes how they feel about the country before they’ve even left the airport or cruise terminal. A seamless arrival experience creates confidence, energy and excitement. Long queues and outdated systems do exactly the opposite.
And there is an economic cost to getting this wrong.
Airports need a clear signal
Right now, airports across the country are planning major upgrades with long-term masterplans. They need a clear signal about the future direction of Australia’s border systems.
Are we building bigger sheds so more people can stand in longer queues? Or are we building a faster, smarter and more secure border that improves the experience for everyone?
Every minute travellers endure being processed at a cruise terminal or airport is time they are not spending in restaurants, shops, hotels and tourism experiences. Every poor arrival experience chips away at Brand Australia.
Every day that we don’t modernise the border is another missed opportunity to bring more flights and more cruise ships to our regions. Because our Australian Border Force do not have the manpower to support growth.
This industry has worked incredibly hard over the past few years to rebuild from the devastation of the pandemic. States and territories are competing to win new business and operators have adapted, invested and fought to restore international confidence in Australia as a destination.
Scrap the card, freeze the tax
The Tourism & Transport Forum is calling for the new $80 holiday tax to be frozen for the next four years. But beyond that, we are calling for Government to finally commit to the seamless border Australia should already have.
Scrap the paper arrivals card. Accelerate border modernisation. Reinvest traveller dollars into improving safety, data collection and the traveller experience.
If Australians and international visitors are paying more to cross our border, they deserve a border system that belongs in this decade, not the last one.
The message is simple: tourism is not a fluffy ‘nice-to-have’. It is a core pillar of Australia’s economy and export market and should not be treated like a convenient cash cow to bolster government revenues.
