‘We’re no cash cow’: Tourism industry hits back at ‘disappointing’ budget tax hike

Queensland’s international tourism sector will push back against a sevenfold increase in the passenger movement charge to $70.

Queensland‘s international tourism sector copped a double blow in the federal budget, according to the sector which is preparing to push back against a hike in the “tourist tax”.

The passenger movement change was increased by $10 to $70, while funding for Tourism Australia was “disappointing”, according to Queensland Tourism Industry Council and Tourism and Transport Forum.

But Tourism Minister Don Farrell said the Albanese government was investing strongly in the sector, including funding for Tropical North Queensland, the Great Barrier Reef and Olympic Games.

It is the first time the passenger movement charge has been increased in five years.

QTIC boss Brett Fraser said the industry would be pushing for the freeze on the charge to be reinstated, warning the hike had the potential to deter international visitors.

“We’re seeing it already where domestic travellers are starting to question if they will take that next domestic holiday. That cost-of-living issue is starting to hit and it’s hitting at a time when international travellers aren’t back yet,” he said.

“If these measures have a compounding effect and they do translate to a slower recovery of international markets, it will have an impact on the employment market, there’s no question about that.”

TTF chief executive Margy Osmond said the budget was “extremely disappointing” and called for greater transparency on how the passenger movement charge was spent.

“We can’t be a cash cow,” she said.

“Slapping an increase on tax on our industry at this time is disappointing and worrying if this is the attitude of government.”

Mr Farrell said he was working with the Queensland government to bring tourists back to iconic destinations.

“This includes funding for Tropical Northern Queensland, protecting and promoting the Great Barrier Reef, and investing heavily in the 2032 Brisbane Olympic and Paralympic Games,” he said.

Opposition tourism spokesman Kevin Hogan said the lack of extra cash for Tourism Australia and increased passenger movement charge would do “no favours” to the tourism industry.