Aussie hotel prices to rise

Australian hotel prices are set to skyrocket following the introduction of the carbon tax, the accommodation industry has warned. A survey by Tourism Accommodation Australia found nearly three quarters of Australian hotels have increased prices or are planning to do so as a result of the tax.

TAA managing director Rodger Powell said there was a strong feeling of uncertainty in the industry about how big an impact the introduction of the carbon tax will have.

"The majority of hotel operators are waiting to see the net effect of the tax on their input costs before finalising new pricing", he said.

"Some hotels have already raised prices in response to increases in their operating costs but the majority are mindful of the ACCC's threats of price-gouging penalties.

"It will take some time to further assess the level of cost increases from suppliers."

Mr Powell said the carbon tax was another cost blow driving up the price of travel to Australia, with concerns about the increase of the Passenger Movement Charge and continued high Australian dollar impacting on Australian tourism.

"This week hotels are also introducing across the board wage increases in line with the recent Fair Work Australia decision for a 2.9 per cent increase in Award pay rates,'' he said.

"All of these factors are putting upward pressure on the cost of travel and accommodation in Australia and reducing our international competitiveness.

"It is critical that Government get the settings right to ensure our industry can compete with other destinations that are not facing a carbon tax.''

Mr Powell said he was worried more Australians will travel overseas and international travellers will shun the country, posing a risk of jobs in the industry.

Source: News.com.au, 6 July 2012