The Tourism & Transport Forum (TTF) has called for a review of the Passenger Movement Charge (PMC) in order to evaluate its impact on Australia’s travel industry.
The federal government has committed to freezing the PMC at AU$55 for the full term of the current parliament, as part of the Coalition’s pre-election guarantees.
Despite the tourism industry’s positive reaction, the TTF believes further assessment is required.
“The PMC is a burden for international visitors that adds significantly to airfares, especially for budget-conscious leisure travellers from short-haul markets,” TTF chief executive Ken Morrison said.
The PMC will net the government AU$890 million this financial year, while expenditure on passenger facilitation at international airports will only total AU$233 million.
“The tax is poorly-designed, with the flat levy hitting the most price-sensitive visitors hardest, running contrary to efforts to attract more leisure visitors from markets in Asia,” Mr Morrison said.
Australia’s PMC is the second highest departure tax in the developed world.