Australia’s exorbitant tax on international travel, the passenger movement charge (PMC), has put the country in the global spotlight this week for all the wrong reasons, according to the country’s leading industry body Tourism & Transport Forum (TTF).
Australia’s exorbitant tax on international travel, the passenger movement charge (PMC), has put the country in the global spotlight this week for all the wrong reasons, according to the country’s leading industry body Tourism & Transport Forum (TTF).
World tourism leaders meeting at the World Travel & Tourism Council’s (WTTC) Global Leadership Summit in Abu Dhabi will be told the PMC is now the highest departure tax in the developed world for short-haul travel. TTF’s Passenger Movement Charge Explained fact sheet was provided to WTTC summit attendees, who include former US president Bill Clinton.
TTF Acting Chief Executive Officer Trent Zimmerman said the fact the PMC has reached the agendas of world bodies including the United Nations tourism agency shows federal government action on the issue is overdue.
“The international tourism community has long lobbied against countries that threaten the growth of their tourism sectors by imposing excessive air travel taxes,” Mr Zimmerman said.
“We are not surprised to see Australia join the ranks of the worst offenders. Last year’s A$8 rise to A$55 coupled with a strong exchange rate has catapulted the PMC up the travel tax league table to second, behind only the UK’s air passenger duty.
“As bad as the UK’s air passenger duty is, you can fly from London to Algeria, Greenland or Turkey and pay one-third of the tax you would pay on a flight from Darwin to Dili – Australia’s shortest international sector.
“The world is taking note. Last month the World Economic Forum’s Travel & Tourism Competitiveness Report recently ranked Australia 130 out of 140 nations for its air ticket taxes.
“Australia’s PMC also featured in the agenda yesterday in Paris of the Travel Facilitation joint working group of the United Nations World Tourism Organization and the Organisation for Economic Cooperation and Development,” Mr Zimmerman said.
WTTC Chief Executive David Scowsill said the industry globally is fighting to get governments to realise the economic potential of tourism.
“High departure taxes like Australia’s PMC dampen demand and work against the goal of delivering economic growth through tourism,” Mr Scowsill said.
Australias Passenger Movement Charge Explained
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