PATA praises Abbott air tax freeze

PATA praises Abbott air tax freeze
By admin


The chief executive of the Pacific Asia Travel Association (PATA) has praised the Abbott Government’s pledge to freeze Australia's departure tax during its first term of office.

Martin Craigs, pictured, speaking to Travel Today at the World Travel and Tourism Summit in Seoul, said it demonstrated a “healthy and positive start” to the Coalition’s rule.

“We are encouraged that he [Tony Abbott] gets the link between travel, tourism and trade,” Craigs said. “They’ll be a few people in New Zealand in particular who will be pleased to know they’re not going to have a significant increase in the Passenger Movement Charge because the tax seems disproportionate across the Tasman.”

Others have questioned, however, whether a promise to freeze the tax, rather than decrease it, was enough to warrant such optimism.

The Australian Federation of Travel Agents (AFTA) has already heaped praise on the Coalition for its stance on the PMC.

Asked whether Abbott went far enough, Craigs, pictured, said: “It shows a positive mindset, the rest can be talked about.”

But he slated the UK Government for its PMC equivalent, the Air Passenger Duty (APD), accusing it of being “lazy and clueless” by taxing aviation so aggressively.

“It’s so easy to tax aviation. Airlines are very regulatory orientated, they behave well and it’s the cheapest tax in the world to collect,” Craigs said. “It’s A101 economics. When you increase costs you reduce demand and there is a tipping point which Britain has reached.”

Australia, Craigs said, has yet to reach that stage where tourists are deterred from travelling because of the tax.

He added that at least a portion of the PMC is returned to the industry in the form of the Asia Marketing Fund.

“That is smart thinking,” he said.

Craigs also praised the “visionary stance” of James Packer, saying Sydney needs another “prestigious landmark”.

“I am also very interested to see how the new Abbott administration tackles the age old problem of Sydney’s second airport,” he said.

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]