Leaders say tourism in strait jacket over rebates for Spirit of Tasmania travel

REBATES for travelling on the Spirit of Tasmania are at an all-time low, triggering a call for a review of Bass Strait passenger costs.

Spirit of Tasmania

REBATES for travelling on the Spirit of Tasmania are at an all-time low, triggering a call from tourism leaders for a review of Bass Strait passenger costs.

The Tourism Industry Council Tasmania says the rebate for motorists taking a vehicle across Bass Strait has plunged more than 40 per cent since its introduction in 1996.

In its submission to the Productivity Commission, the council said the Bass Strait Passenger Vehicle Equalisation Scheme was critical to regional tourism.

Council chief executive Luke Martin said the scheme was designed to make the cost of crossing the Bass Strait comparable with the cost of travelling the same distance on the national highway scheme.

But he said the rebate offered had not kept pace with rising transport costs and the relative value of the rebate was therefore significantly less today than when it was first introduced.

Mr Martin said the current value of the rebate was $204 one-way, which no longer covered the full cost of vehicle transport.

TT-Line therefore charged passengers an additional $79 per standard vehicle each way to cover the gap between the rebate and the cost of passage.

"If the same formula used to establish the scheme in 1996 was applied today, the rebate would be around $330 each way, nearly 40 per cent more than it is," he said.

Mr Martin said the scheme was critical to supporting regional tourism.

"Without the scheme, the cost of taking your vehicle across the Bass Strait would be up to $400 more return, which would kill this visitor market and undermine the viability of the Spirit of Tasmania service, which would have massive ramifications for the Tasmanian economy and community," he said.

The tourism industry has long been concerned by the lack of available space for motorhomes and passenger vehicles on the Spirit of Tasmania in peak periods.

"Visitors who arrive in Tasmania by sea with their own vehicle stay longer, spend more and disperse further through regional areas of the state," Mr Martin said.

RACT spokesman Vince Taskunas said the motoring body supported the tourism council's submission, labelling the current set up "far from perfect".

RACT recently bought several key regional tourism businesses, including Strahan Village, Freycinet Lodge and Cradle Mountain Chateau.

"There needs to be a much greater focus on people and the movement of people across Bass Strait, and the structures that incentivise, support and equalise the costs," Mr Taskunas said.

"Sometimes demand is outstripping supply when it comes to access for people and cars."

The council's submission calls for the scheme and indexation to be locked in through legislation or a long-term funding deed by the Federal Government, to give Tasmanians certainty about passenger costs.

State Opposition infrastructure spokesman Rene Hidding said the Liberal Party was working with the Federal Government on a plan for the Bass Strait to ensure Tasmania was competitively placed to create economic growth.

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