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New backpacker tax a tourism threat, says industry

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New backpacker tax a tourism threat, says industry

The 25 per cent tax increase on the Working Holiday Visa announced by the Federal Govenrment is a "major setback for the tourism industry, says the Victoria Tourism Industry Council.

Victoria Tourism Industry Council (VTIC) chief executive Dianne Smith says the increase from $280 to $350 would have a particular impact on younger tourist segments like backpackers who are invaluable market for the tourism industry.

"Wxpenditure by Working Holiday Visa (WHV) visitors while they’re in Australia is a great source of revenue for Australia’s economy and, beyond the direct expenditure WHV tourists bring, they also provide much needed labour and skills in the tourism and other industries," Smith said.

“This additional tax is yet another barrier in a situation in which we're trying to encourage, not dissuade.

“This added cost compounds the already difficult climate in which the tourism industry is operating in. The high Australian dollar, our distance from the rest of the world, the rise of competitors such as Canada and US, to name a few, are already challenging our industry.

“These charges will have a particular impact on younger tourist segments, such as backpackers, and will not only reduce tourism expenditure by making Australia a less competitive destination, but may exacerbate labour and skills gaps currently filled by WHV visitors.

“The move is particularly damaging to our regional centres which depend on visitors such as these to travel and work in their regions, and is contrary to the government’s current strategy to attract increased labour particularly to rural and regional areas.

“We’d like to see the WHV scheme made more attractive for visitors through measures like increasing the maximum age from 30 to 35, not making it less appealing through increased charges.

 


 

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