Latest News
HomeAustralia & N.ZealandAustrialia’s Carbon Tax is another cost burden on a struggling industry
World Travel & Tourism Council

Austrialia’s Carbon Tax is another cost burden on a struggling industry

Speaking at the Australian Tourism Directions Conference in Canberra, David Scowsill, President & CEO of the World Travel & Tourism Council (WTTC) recognised Australia’s commitment to the promotion of Travel & Tourism, but attacked the Carbon Tax announced by the government yesterday…

Speaking at the Australian Tourism Directions Conference in Canberra, David Scowsill, President & CEO of the World Travel & Tourism Council (WTTC) recognised Australia’s commitment to the promotion of Travel & Tourism, but attacked the Carbon Tax announced by the government yesterday.

Australia is now the seventh largest Travel & Tourism economy in the world and it is set to maintain this position over the next 10 years.

International arrivals are continuing to grow – and spending by international visitors in Australia has grown by around a third since 2005. The Chinese are now the highest spending inbound tourists.

David Scowsill, President & CEO, WTTC said: ‘”ustralia developed forceful marketing campaigns with a focus on key markets such as China; it has put sustainability at the heart of its offering; and it has promoted open skies to encourage more airlines and lower air fares. It has one of the world’s best financed and politically supported public sector tourism structures, but it will need significant investment in infrastructure to keep pace with the long term growth of tourism.”

However, while Australia can be seen as a successful example of sustainable tourism growth there are some challenges ahead.

The short to medium term outlook for the economies in the western world is not ideal. Continued weakness in demand in Europe and North America will affect some of Australia’s key markets – Europe and USA still account for around 20% of international visitors and 22% of spending. The Japanese inbound market still has not recovered from the 2005 drop-off, but fortunately the Chinese market continues to grow.

To sustain the current growth in Australia’s Travel & Tourism industry the government needs to understand the intense pressure brought to bear on the industry by the imposition of ever-increasing and ever-diversified forms of taxation. The new carbon tax that the government is imposing will undoubtedly have a negative effect on the country’s Travel & Tourism industry.

David concluded: “Taxes should not be imposed purely as a revenue generating exercise for the central government. The Australian Government already makes $650 million per annum from the Passenger Movement Charge of $47 per passenger. It seems counter-productive to unilaterally impose a carbon tax as an additional burden to the industry, as it will mean inevitable price rises for consumers and a consequential dampening of demand for travel. I urge the Government to think very seriously about an initiative which would prove damaging to its Travel & Tourism industry and the wider economy.”

Top ten countries by total contribution of Travel & Tourism to GDP 2011
1. United States
2. China
3. Japan
4. France
5. Spain
6. Brazil
7. Australia
8. Italy
9. UK
10. Germany

Co-Founder & Managing Editor - TravelDailyNews Media Network | + Articles

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

13/05/2024
10/05/2024
09/05/2024
08/05/2024
07/05/2024
06/05/2024