The chief executive of the industry body that represents hotels and motels has welcomed the 10 per cent goods and services tax that will apply to overseas online travel agents from July next year.

But Richard Munro, CEO of the Accommodation Association, warned the online booking giants like Expedia and Booking.com, which he labelled industry "wrecking balls", could simply pass on the extra cost to accommodation businesses by "ramping up their commissions even more".