reprinted from:
Labor warns of travel levy threat to families
By Malcolm Cole The tourism industry has stepped up its campaign for government help, after another slump in international visitor numbers. International arrivals fell by 4.1 per cent in the 12 months to September, prompting the Australian Tourism Export Council to demand "an aggressive marketing campaign" to bring overseas visitors to Australia. But the Federal Opposition has criticised talk of a new tourism tax to fund the campaign, saying Australian workers would be hardest hit by such a move. ATEC managing director Peter Shelley said the campaign was essential to counter the events of the past 15 months, which had undermined Australia's strong exposure during the 2000 Olympics. "It is imperative that Australia maintains its investment in the global marketplace, via strong marketing to ensure we minimise lost momentum and are well positioned to capitalise on the eventual upturn in consumer travel confidence," he said. The Howard Government is understood to be considering a new Ansett-style ticket levy or an increase in the international departure tax to fund a rescue strategy for the struggling tourism industry. Labor's tourism spokesman Gavan O'Connor attacked the idea, saying the Government "wants to dig even deeper into the pockets of Australian workers". "Only last week the Prime Minister's close associate, Finance Minister Nick Minchin, was asked three times during a Senate Estimates hearing whether he could rule out an increase to taxes on airline tickets, and three times he failed to do so," Mr O'Connor said "It is clear the cash-strapped Howard Government is preparing to increase taxes on the family holiday. "The Howard Government seems to believe that the best way to lift travel out of the doldrums is to increase the cost of travel." Tourism Taskforce chief executive Christopher Brown this week said the industry was "probably prepared to wear a levy" to fund an international marketing campaign, as well as a domestic restructuring of tourism infrastructure. He estimated the changes, under consideration as part of Tourism Minister Joe Hockey's strategic review of the tourism industry, would cost between $50 million and $100 million to implement. Government sources said the budget was too tight for a significant cash injection to tourism marketing, and any new measures would need to be funded, probably through a levy. A spokesman for Mr Hockey would not comment on whether a new ticket levy was under consideration, saying the Government was yet to finalise the tourism white paper. Deputy Prime Minister and Transport Minister John Anderson yesterday announced the Government would cut air traffic control charges by 3.6 per cent, saving airlines $10 million per year. Mr Anderson said he wanted to reduce costs
for airlines and passengers after what has been "a very difficult period for
the airline industry, due to the continuing effects of September 11 and the
grounding of Ansett". |