Accommodation sector wants quick carbon tax fix

Tourism Accommodation Australia (TAA) has identified productivity and infrastructure development as key areas that need to be addressed by the industry and government if new regional hotels and resorts are to be viable in the future.

Managing Director of TAA, Rodger Powell, said that in many parts of regional Australia, hotel operators had experienced flat or even negative growth over the past five years.

The national and global economic downturn and the persistently high Australian dollar had affected demand in a large number of regional and resort destinations, he said.

"Conversely, costs have continued to grow, seriously affecting the bottom line for many hotel operations."

Powell said regional hotel operators have had the "double impact" of reduced demand and higher costs, "and while it was thought earlier this year that the fall in the Australian dollar would provide relief for the industry, recent months have shown that the dollar has stubbornly refused to fall to the anticipated US$0.80c mark".

"As a result, the gap between outbound departures and inbound arrivals has grown, and it continues to be a disincentive to domestic tourism."

Powell said hotel operators would welcome an urgent end to the carbon tax, as it had been a key driver of increased costs.

Source:  travelmole.com.au