The Federal Government, as predicted, last night announced an increase in the Passenger Movement Charge (PMC) from $60 to $70 in the Federal Budget.
The PMC is a fee that applies to all outbound travellers from Australia, whether they are departing by air or by sea. And while the increase will no doubt impact many travellers, the Government argues that the PMC has not risen since 2017 and that the extra $10 is more or less in line with inflation. Since 1978, when the travel fee was introduced, the PMC has grown from $10 to $70.
Australian travel industry body, the Tourism and Transport Forum (TTF) says it is “deeply disappointed that the Federal Government has lifted the Passenger Movement Charge to a hefty $70 … pushing up the cost of travel for Australians and international visitors”.
“This will make it even more difficult for tourism to bounce back as cost-of-living pressures increase and as the industry rebuilds from the devastating impacts of the COVID pandemic,” TTF CEO Margy Osmond said.
“It will also make it more expensive for international tourists to come to Australia.”
Despite its disappointment in the announcement, TTF says it is satisfied with the timing of the increase.
“We are pleased the government has listened to industry and used real common sense by not introducing the increase until 1 July, 2024, to enable the aviation sector to adequately prepare for the implementation of the increase,” Osmond stated.
In a joint message released earlier this week, TTF, the Australian Federation of Travel Agents (AFTA) and the Australian Airports Association (AAA) called the PMC a “tax on travel” and a “holiday tax”.
What the Govt makes
Meanwhile, AFTA says the increase in the PMC was “disappointing given the current state of the travel sector”.
It claimed that the announcement would generate an extra $520 million over the five years from 2022/23.
“Today’s decision to increase the PMC by 16 per cent is extremely disappointing and will make it harder for Australian families to stay connected,” AFTA CEO Dean Long said.
“We know that the PMC does reduce air capacity to Australia and with supply of air seat still tracking 30 per cent to pre-COVID levels this will slow down our recovery.
“In the three years prior to the pandemic, the PMC collected on average $811 million more than needed to fund the biosecurity requirements to keep the community and agriculture sector pest free.
“The Government is now demanding an additional $200m for next year which is unwarranted and not appropriate especially in the current environment.
“AFTA, TTF and AAA will be coordinating the sector’s response and our efforts through the parliamentary review process to get the best possible outcome for our members, clients and the Sector at large.”
