Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Hansard source

I have to say it is ironic to receive a question on tourism from Labor. Labor did not even bother taking a tourism policy to the 2013 federal election. Labor cut funding for Tourism Australia and then it imposed the passenger movement charge with two separate increases occurring without warning—a $55 tax levied on each passenger, which was an increase of a total of 45 per cent under Labor. Labor increased tourist visa fees by more than 50 per cent. The world's biggest carbon tax cost the Australian accommodation sector $112 million in its first year; it reduced hotel profitability by 12 per cent. And Labor strangled the temporary skilled migration program at a time when tourism and hospitality businesses were desperately struggling to find skilled labour. It would be amusing if it were not so serious.

Our tourism industry achieved record results in 2014, with international expenditure up nine per cent to an all-time high of $30.7 billion and our tourism investment pipeline growing by nine per cent. A recent World Economic Forum report shows that the global ranking of competitiveness for Australia's tourism sector has improved from 13th in the world under Labor to seventh in the world this year. We have made a strong start supporting tourism, but of course there is more to do.

Deloitte has recognised tourism as one of only five sectors set for supercharged growth in coming decades, and the opportunities are immense. One hundred million Chinese people went on an international holiday last year. This will double to some 200 million outbound Chinese by 2020. The elevation of tourism to the cabinet table, by bringing tourism into its natural home in the Department of Foreign Affairs and Trade, was a conscious decision that we made in recognition of the sector's importance. The 2015-16 budget provided $36.7 million over the forward estimates in additional funding to Tourism Australia to support marketing activities abroad. This is the result of new foreign exchange arrangements that see Tourism Australia compensated for a weaker Australian dollar, consistent with the Foreign Affairs and Trade portfolio partners. In response to this, the Australian Hotels Association said:

The Federal Government is to be commended on today's announcement and recognition that tourism is a key player in ‎international commerce …

Similarly, the Accommodation Association said:

The funding pledge will assist with ensuring Australia is able to continue to compete in the aggressive global market for international visitors.

So, this is all good news.

Other key budget outcomes for tourism that, obviously, the shadow minister overlooked are $30 million to increase promotion of foreign direct investment in priority areas, including tourism infrastructure; and $18 million to expand the series of Australia Week trade and promotional events in China, India, the US and ASEAN, promoting Australia as a world-class tourism destination and a valued trade and investment partner. As is publicly available information, Australia Week is held every two years.

The budget builds on the government's recent support for tourism, which includes striking a landmark air services agreement with China and freezing the passenger movement charge that increased 45 per cent under Labor. I can tell you that the tourism industry is delighted by the fact that we froze the passenger movement charge that Labor increased twice, without warning, to 45 per cent. We have announced three-year multi-entry visas for approved tourists and business applicants from China. We are launching pilots for online visitor visa lodgements for China and India, with a full rollout by the end of the year.

In particular, I wanted to mention working holiday makers—the backpackers. I will forgive the shadow minister for not understanding this: backpackers are currently treated as residents for tax purposes, but they are not residents. They should not access the tax-free threshold. The decision to remove the tax-free threshold for backpackers is all about tax consistency, something that Labor would not understand. This measure is closing a loophole; it is not applying a new tax. I do not expect those opposite to understand this, because they have never seen a tax that they do not embrace. I am sorry, but this is a loophole; it is not a tax. Backpackers make use of services and amenities funded by Australian taxpayers, so it is only reasonable to get them to contribute towards these services while they are in Australia.

The measure will not undermine our working holiday program. Indeed, given that many backpackers in Australia do not even make use of the residential taxation provisions, this move is not expected to have a significant impact at all on demand for these visas. Research from Tourism Australia indicates that backpackers choose to come to Australia primarily for cultural and leisure purposes. We are a lifestyle superpower on the world stage, and taxation arrangements are not the major driver of their travel in any respect.

We have a proud record of supporting working holiday makers in Australia. Unlike the ACTU, the bosses of those opposite, we do not demonise backpackers— (Time expired)

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