Backpackers to Australia will from next year have an extra to load to carry following the Australian government’s decision to increase the cost of Working Holiday Visas (WHV).
From January 1, 2013, the cost of a WHV for Australia will go up from AU$280 (R2 525) to around AU$360 (R3 246) with travel industry bodies warning that this will have an impact on the price sensitive youth market.
Commenting on the increase, Felicia Mariani, md for the Australian Tourism Export Council (ATEC) said: “This kind of gouging will have a critical impact on our (Australia’s) competitiveness in the lucrative youth market.”
She added that this increase would be on top of the 17% increase to the Passenger Movement Charge in the recent budget as well as the introduction of an airport police tax from next year.
“Australia is already way ahead of most of our competitor countries on fees associated to travelling here, with the WHV fees amongst the highest of most western countries.”
Chief executive for the Tourism and Transport Forum (TTF) in Australia, John Lee, agrees and said that it is wrong to assume that the backpacker youth market will keep coming to Australia regardless of cost. Instead, he said working holiday makers will go somewhere else.
“Each fee increase is less money backpackers have to spend once they arrive, which means they visit fewer regional town as they travel around Australia,” said John.
Felicia adds that currently, WHV already requires applicants to secure AU$5 000 (R45 092) in savings to gain entry into the country, plus they must have a return ticket to their home destination. This, Felicia said puts Australia’s requirements well in excess of competitor destinations such as Canada and New Zealand.
Both Felicia and John also agree that at the same time, the strong Australian dollar has taken a real toll on the country’s performance in the youth sector and adding another tax increase could put Australia off the map for many young travellers.
Bye, bye backpackers
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