Steve Whan, Manager of the National Tourism Council, said: "The tourism sector is pleased that the Government has seen the merit in funding tourism even as it faces a tough fiscal challenge. But we are very disappointed there has been no reversal of the so-called backpacker tax.
"Maintaining funding for Tourism Australia is a key commitment, which will pay dividends for the whole economy. Tourism Australia has been allocated core funding of $140.3 million in 2016-17, this combined with industry contributions and Asia Marketing fund will see their budget remain relatively stable.
"The Government has wisely honoured its commitment to freeze the Passenger Movement Change at $55 a head. The charge raises more than four times the cost of immigration operations at our international ports, so it has gone beyond its original cost-recovery approach. Keeping upfront taxes and charges as low as possible is critical for promoting tourism and ensuring our visitors have more to spend when they are here.
"Tourism strongly welcomes the establishment of a premium border clearance service which has been advocated by the sector, a user paid service that will help to attract more high-spending visitors to Australia.
"These initiatives reflect the fact that tourism is a star in an otherwise sluggish economy, creating many jobs and supporting our balance of trade. Every dollar invested in tourism marketing and developing our product delivers several dollars of returns to the economy and the Government.
"About 1 in 20 Australian jobs is in tourism, following strong employment growth over the past year, and the sector boosted our balance of payments by $1.5 billion in February alone. Given this, it is vital that Government policies support tourism growth rather than strangle it.
"We do have some concerns though. It is hugely disappointing that there has been no shift on the Government's proposed tax increases for working holidaymakers (the backpacker tax). The current proposal will lead to labour shortages in tourism and hospitality businesses, particularly in regional areas.
"Tourism will continue to work with farmers to try to get this counterproductive tax amended.
"We will also be keeping a close eye on the impact of efficiency dividends on Austrade and on Immigration's front line border services. Getting passengers through the airport quickly and effectively needs a greater focus and more staff, so it is important efficiency dividends do not flow through to cuts in these frontline services."