Queensland Tourism boss Daniel Gschwind is worried about the impact of the carbon tax on the State’s tourism industry, as reported in the Gold Coast Bulletin this morning:
THE carbon tax is another challenge for the Gold Coast tourism industry in a climate where the Australian dollar is through the roof and people are already cutting back.
Daniel Gschwind, CEO of the Queensland Tourism Industry Council, said the new tax meant the cost of doing business was going to go up and a big part of tourism’s market was going to be hit — the international visitor.
“Government compensation for consumers only works in the domestic market,” he said.
That’s true, although I think the carbon tax impact is minor compared with the impact of the high Australian dollar, and the carbon tax actually might reduce the exchange rate by making our coal industry less competitive and reducing coal exports (see my post from yesterday).
Mr Gschwind is also concerned about the impact of the carbon tax on domestic airfares, particularly relative to international airfares. This is more of an issue for the long-term, as the carbon tax ramps up. In the short-term, the impact should be modest, relative to the total cost of an airfare. Earlier this year the ABC reported that Qantas CEO Alan Joyce said:
…if the carbon price is between $20 and $30 a ton it could take $100 million off the airline’s annual profit.
He says the cost would be passed on to customers and estimates it would be around $6 extra per domestic flight.
There are also concerns about the impact of the carbon tax on the building industry:
Clearly the Government faces a tough challenge in selling this tax.