Carbon tax impact to be felt by accommodation industry

Richard Munro, AAA chief executive officer, says the carbon tax will undoubtedly have an impact on the cost of transport for holiday and business travellers, and the amount of discretionary spend that customers will have for accommodation.

"Today marks the unfortunate start of higher prices for a range of services, and the accommodation and tourism industry will no doubt feel this impact," Munro said.

"Although it is up to individual operators to determine their own rates, we are likely to see increases in room rates as a result of the carbon tax because the costs to accommodation operators to run their businesses will increase. This is particularly due to hikes in the cost of electricity prices.

"Suppliers to the accommodation industry, of which there are many, may also pass on their increased costs, which the association estimates to be up to three per cent higher following the introduction of the carbon tax."

"The association is disappointed that this new tax will have such a negative impact on customers. For several years already, the accommodation industry has introduced significant measures to counter emissions, including air conditioning controls, recycling, low-voltage lights, energy saving key card room controllers and widespread annual participation in Earth Hour to name a few.

"Although there are government payments to consumers to offset the impact of the tax, not every Australian is eligible for these.

"We are concerned that paying even more taxes will be a disincentive to travel and holiday within Australia, which is counterproductive to stimulating our local economy and encouraging the support of our domestic accommodation and tourism industry."