Mixed budget for accommodation industry

The 2012-13 Federal Budget is a mixed bag for Australia’s accommodation industry.

The Accommodation Association of Australia says while the Federal Government’s greater commitment to tourism marketing in Asia is welcomed – especially following the release of the Australian Tourism Investment Guide – as is the introduction of tax loss carrybacks, the deferral of company tax cuts will not assist business.

“Uncertainty within the accommodation industry is likely to increase as a result of the Budget,” said the Accommodation Association’s Chief Executive Officer, Richard Munro.

“With the introduction of the carbon tax now less than two months away, operators of accommodation businesses were looking forward to relief through company tax cuts – but these are off the agenda in the short-term.

“Our industry relies heavily on consumer confidence, so we are hoping that accommodation businesses will see some of the benefits of the household assistance package.

“The industry looks forward to Australians spending at least some of this money on taking a holiday within Australia.”

The Accommodation Association is concerned that airports are facing higher costs as a result of the Budget.

“In our Pre-Budget submission, the Accommodation Association argued that the Passenger Movement Charge should be recalibrated so that it provides a higher level of support for domestic tourism,” Mr Munro said.

“This would have been far more preferable than a straight increase, as has been announced.

“With airports also having to foot the bill for the cost of police patrols at terminals, inevitably this extra impost is likely to be paid for by the travelling public.

“Increasing the cost of travel invariably results in less people staying in tourism accommodation.”

 Source: The Accommodation Association of Australia, 9 May 2012