Tourist industry hits out at tax increase in budget

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The tourism sector says a higher levy in the federal budget will impact Australia's attractiveness to overseas visitors.

The Albanese government will raise the passenger movement charge by $10 from July 1 next year, taking it to $70.

The charge is levied on passengers departing Australia on international flights or sea transport, irrespective of a passenger's intention to return to Australia.

It was last increased in 2017.

"This increase is a short-sighted move that will slow down the return of international tourism arrivals, which is ultimately harmful to the Australian economy," Australian Chamber - Tourism chair John Hart said.

"The country's price competitiveness is already low, ranking 116 out of 117 economies, due to imposts such as the passenger movement charge, making Australia the most expensive in the world in terms of passenger taxes."

Mr Hart said there should be a freeze on the charge for the next five years and the revenue collected should go to "improving the passenger experience".

The sector welcomed ongoing funding for Tourism Australia.

Tourism Minister Don Farrell said in a statement the government was supporting the nation's fourth-largest export earner through a $48 million tourism and travel package.

This funds would help tourism businesses attract and upskill workers to address workforce shortages and improve the quality of Australia's visitor offerings, he said.

The budget also included $25.9 million over four years to improve visitor infrastructure at the popular Kakadu national park.

Treasury expects a rise in the number of international tourists especially from China.