Carbon tax threatens tourism

Plans to attract interstate visitors to the Busselton shire could be under threat from the carbon tax, after tips domestic flight prices could increase.

Qantas and Virgin Australia announced last week travellers could expect domestic air fares to rise, while international routes remained unaffected.

Forrest MP Nola Marino said the Capes region’s tourism industry was already facing the challenges of a high Australian dollar, and the tax would make a South West holiday less price competitive.

“Taxing only domestic flights show just what a farce the carbon tax really is,” she said.

“Tourists will pay the carbon tax (for domestic flights) but they won’t pay if they fly to overseas destinations like Bali.”

“Common sense tells you that you’ll burn more fuel, and generate more emissions flying to Bali than you will coming to the South West.”

Busselton Chamber of Commerce and Industry vice-president Peter Gordon said the tax would undermine current efforts to encourage air travel into Busselton and attract tourists directly from the Eastern States.

“We are trying to get the airport expanded at the moment and bring tourists in and this carbon tax is going to detract from that method of transport,” he said.

Geographe Bay Tourism Association chief executive Matt Walker said consumers were price-sensitive in the current economic environment and made “value-for-money assessment(s)” when looking at a holiday.

“If another destination, not subject to a carbon tax, can offer a similar experience at a cheaper price then they are more likely to choose that one,” he said.

Mr Walker said the association was also expecting the tax to increase the operating costs of tourism businesses which would most likely be passed on to consumers.

Ms Marino said regional tourism operators could least afford to pass on extra costs and the tax would hurt many regional communities relying on the tourism dollar.

However, Mr Walker said the region’s visitors enjoyed its natural beauty and “as an industry we need to ensure we are doing as much as possible to limit our impacts.”

Skywest Airlines’ commercial operations vice-president Alan Stuart said the airline was not in a position to comment on the impact of the tax on its new Busselton service.