Australia is treating Chinese tourists like second-class citizens by charging them far more for visas than European and Americans, a top tourism leader says.
Electronic visas for passport holders from countries like the United States, European Union nations and even Hong Kong cost only $20 and can be lodged online. But other nationalities, such as China, India, Brazil and Indonesia are charged $135 to apply for a visa.
“A Chinese tourist would be right to ask why they are being slugged $135 for a visa when other tourists can pay a fee as low as $20 – that is sending the wrong message to what will soon be our largest tourist market that we don’t value their visitations as much as others,” Tourism & Transport Forum chief executive Margy Osmond said.
The tourism industry has been growing rapidly at a time of decline in the mining industry, with international arrivals up 6.7 per cent to 6.7 million and spending up 13 per cent to $34.8 billion in the 12 months ended September 30. But in a pre-budget submission obtained by The Australian Financial Review, TTF argued arrivals could increase even more rapidly if policy changes were made.
“International research has demonstrated that competitive visa reforms can increase tourism arrivals by between 5 to 25 per cent on average over a three-year period,” Ms Osmond said. “If we applied this potential boost to our Chinese visitor market we could see an extra 255,000 Chinese visitors over three years on top of the 20 per cent annual growth we’ve had in recent years.”
The new pilot 10-year multiple entry visa for Chinese passport holders comes with a $1000 application fee, versus similar products from the US for $215, Canada for $105 and Singapore for $28.
BACKPACKERS PAYING TOO MUCH AS WELL
TTF has also expressed concern about the rising cost of working holiday maker visas used by backpackers, which has risen from $280 in 2011 to $440 now.
The number of visas issued to working holiday makers has been falling over the last few years, and the tourism industry fears further falls after the tax-free threshold for those visa holders is abolished from July 1. As a result, working holiday makers will pay 32.5¢ on the dollar in tax from the first dollar of income up to $80,000.
Opposition members, including Shadow Treasurer Chris Bowen and Shadow Tourism Minister Anthony Albanese on Tuesday called on the Government to begin comprehensive consultations with the tourism and agricultural sectors to redesign the so-called “backpacker tax”.
“Last year in Senate estimates the Government admitted it had undertaken no economic modelling to determine the impact on demand for working holiday visas the change would have before announcing it as part of the 2015 Budget,” the members said.
“Labor believes that any tax on working holiday maker earnings must be properly considered, designed and carefully calibrated to ensure measures do not have a counterproductive effect on labour, jobs or tourism expenditure.”