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Australia urged to rethink airport tax

 

Copyright 2003 Wellington Newspapers Limited
Article date: January 23
, 2003
 

Australia should consider a pro rata approach to airport departure taxes for short-haul flights as present charges distort prices, Tourism Minister Mark Burton says.

Mr Burton, speaking in Sydney, said airport taxes out of Australia had increased significantly in recent years and could inflate airfares to New Zealand by as much as 20 per cent. "In comparison, a A$ 2000 (NZ$ 2175) fare to the UK carries a tax component comprising a mere 5 per cent of the cost of travel," Mr Burton said.

Sydney is the most expensive Australian city to leave, at A$ 38, while Wellington is New Zealand's dearest at NZ$ 25.

"Such charges distort the pricing for New Zealand as a destination and hinder the sector's ability to market New Zealand as a competitive short-haul international destination."

A pro rata approach to departure taxes for short-haul destinations would ensure some relativity in tax-to-airfare levels, he said.
 

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