The Passenger Movement Charge will be bumped up from $70 to $80 per person from January 1, 2027 in a move the federal government says will bring in $755 million in revenue over the next five years.
The increased tax will make every international business event held in Australia more expensive for international delegates as well as increasing the cost for Australians attending business events anywhere else in the world.
The higher tax could have particularly stark implications for mega incentives in Australia, which largely come out of China – a 10,000 pax incentive will attract $100,000 of additional Passenger Movement Charge taxes – more when the staff delivering the event are taken into account.
“Business events are highly competitive globally and Australia cannot afford to make it harder or more expensive for international delegates, exhibitors and incentive groups to choose us,” said Australian Business Events Association (ABEA) CEO, Melissa Brown.
“A further $10 increase to the Passenger Movement Charge sends the wrong message at the wrong time, particularly without a clear commitment to reinvest that revenue into areas that strengthen our competitiveness, including business events bid support, border processing, passenger facilitation and the broader visitor economy.
“For business events, the decision to choose Australia starts well before arrival.
“Organisers and clients are weighing up destination appeal, cost, air access, visa settings and ease of travel.
“Any additional friction matters.
“Australia has an exceptional business events offering, but we compete against destinations investing heavily to attract high-value international events.
“If additional revenue is being raised from international travellers, it should be transparently reinvested in growing the visitor economy and the productivity benefits these events deliver for Australia,” she said.
With the tax increase impacting every inbound and outbound tourist, the wider tourism industry has expressed its dismay at the federal government move.
Tourism and Transport Forum (TTF) CEO Margy Osmond called the increase to the Passenger Movement Charge “an absolute shocker for the tourism industry”.
“We’re outraged that the government has decided to make travel even more expensive, when operators are already under enormous pressure from the ongoing fuel crisis and surging operating costs,” she said.
“The government talks constantly about supporting tourism and growing visitation, yet tonight’s budget makes Australia more expensive to visit and more expensive for Australians to travel.”
The Australian Tourism Export Council (ATEC) said the budget did not support Australia’s competitiveness in the global tourism marketplace.
“This budget reduces support for an industry that is still stabilising post the pandemic and facing growing pressure around traveller affordability, aviation costs and booking conversion as a result of the Middle East conflict,” said ATEC’s managing director Peter Shelley.
“ATEC is calling on the government to recognise the growing pressures facing the inbound tourism sector and provide stronger support for international market recovery, aviation affordability and global competitiveness as the industry continues to rebuild momentum in a highly volatile operating environment.
“While ATEC recognises the government’s broader efficiency measures across agencies and programs, international tourism marketing should be treated as a strategic export investment rather than a discretionary saving measure.”
