Visa cost increase needs rethink
Treasurer Wayne Swan plans to increase visa charges for skilled migrants, backpackers and spouses of Australian citizens.
The $70 increase to the Working Holiday Visa represents a 25% increase that takes the cost of from the current $280 to $350.
It is another increase in charges on tourists to Australia at a time when the industry is only just seeing some growth after years in the doldrums. And at a time when the government wants tourism growth to double by 2010.
It is also affecting the backpacker market that has seen arrivals falling over the last few years and these visitors provide an important temporary labour force in regional Australia.
Backpacker Trade News has put together an online petition opposing the increase for the visa that it will present to federal tourism minister Martin Ferguson who will be attending the ABIC conference in November.
The tourist industry generally is appalled at yet another impost.
“Australia’s tourism industry urges Wayne Swan to think closely about the affects any increase to visitor visas will have on our competitiveness in the international market,” ATEC managing director, Felicia Mariani said. “This government needs to look beyond the short-term tax grab and recognise the significant economic benefit created by the tourism economy in this country. Any increases in visa costs would be a short-lived budget gain that puts at risk the $27 billion contribution inbound tourism makes to the Australian
economy and its potential growth, which is estimated to be over $30 billion by 2020.”
Ms Mariani said the recommended changes have the potential to significantly increase the $2.3 billion dollars already being spent by Working Holiday Makers by around $700 million over a 10-year period. This contribution would be in jeopardy if the visa fee increases go ahead.
The VHV hike is on top of the 17% increase to the Passenger Movement Charge in the recent budget; an efficiency dividend of $34 million to passenger facilitation services of the Customs Department that has resulted in a cut to front-line staff from our major gateway airports; and levies thrust upon our national airports for security services provided by the federal police.
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