Responding to the decision that the minimum wage will increase by 2.9 per cent (or $17.10 a week), the Accommodation Association of Australia says it’s another example of businesses in the tourism industry being subjected to higher costs.
“It’s well documented that broadly speaking, trading conditions for tourism businesses are far more difficult than other industries,” said the Chief Executive Officer of the Accommodation Association, Richard Munro.
“This was highlighted in our submission as one of the reasons why the increase in the minimum wage should have been capped at 2.25 per cent.
“Given labour is one of the highest costs for tourism accommodation businesses, the decision makes doing business even tougher than it already is.
“On top of this increase, the accommodation industry is struggling to quantify the financial impact of the introduction of the carbon tax – which comes in exactly one month from today.
“Our industry is also in line to be penalised by Federal Budget measures such as the increase in the Passenger Movement Charge and the proposal to lift the Managed Investment Trust Withholding Tax.
“Also of note is that although the process doesn’t commence until 2013-14, the increases in the superannuation guarantee are already imposing additional costs on businesses in our industry – they have started to allocate higher amounts in their budgets for accrual of annual leave, long-service leave and other forms of leave.
“For tourism accommodation businesses, it makes the task of continuing to provide some of the highest levels of customer service in the world more expensive.”