AUSTRALASIA – The Australian tourism industry is “fighting with one hand behind its back” after the federal government announced plans to increase visa fees and taxes, industry groups have warned.
The Australian Government revealed it would increase visa application fees from July as part of its 2015-16 Budget. The move is expected to raise AUD$437.1m (US$350.5m) over four years.
Visitors from China are predicted to foot $5m of the bill, with visa application fees rising from $130 to $135.
It comes as the government also detailed plans to generate $540m, over four years, by removing the tax-free threshold for working holidaymakers.
Tourism & Transport Forum (TTF) chief executive Margy Osmond warned Australia risked being overtaken by countries “hungry to support their tourism industries.”
“Increasing visitor visa application charges is sending Australia in the wrong direction,” Osmond said. "With fierce global competition for the visitor dollar, jacking up the cost of visa applications is an enormous own goal.”
Osmond said the industry had lobbied the government to reduce the cost of visas from key markets, such as China, to combat visa reforms by major competitors.
“It is disappointing that the government has not taken the bold steps it needs to support the jobs engine that is the visitor economy,” Osmond said.
During yesterday’s (12 May) Budget address, treasurer Joe Hockey said: “We don’t want to increase taxes on Australians, but we do want everyone to pay their fair share along the way.”
Association of Australian Convention Bureaux (AACB) executive director Andrew Hiebl said higher border fees would give Australia’s competitors an advantage.
“Any increase in border fees and charges, especially within the growth markets of Asia, creates a barrier that challenges corporate incentive bids and delegate boosting campaigns,” Hiebl said.
He said research showed 30 per cent of inbound international business event delegates were from Asia.
However, Hiebl welcomed an additional $36.7m over forward estimates for Tourism Australia’s international marketing activities, as well as the decision to freeze passenger movement charges.
“Safeguarding funding for international marketing is paramount,” Hiebl said.
“One of our primary policy objectives is to ensure funding security for Tourism Australia and its Business Events Australia division.
“This budget helps convention bureaux, partnering with Tourism Australia, to continue international marketing efforts and ensure future growth in the sector.”
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