Australian accommodation prices set to rise

Mozo

Thursday 05 July 2012

The new carbon tax framework that is being implemented across Australia could have a major impact on the nation's tourism sector.

Government officials have introduced the levy to deter firms from producing harmful CO2 emissions, but it has been met with controversy.

The cost of living is already sky-high in Australia and people are concerned that energy companies will bump up their prices to offset the losses brought about by the carbon tax.

According to the Accommodation Association of Australia, the average cost of a hotel room down under will grow by three per cent as a result of the hike, which may put off a lot of holidaymakers and business travellers.

"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," commented the organisation's chief executive Richard Munro.

With the Aussie dollar still being relatively strong, it would not be surprising to see more people shunning costly hotels in their homeland in favour of a trip abroad.

Although the value of the currency has dipped by around eight per cent against the British pound and US dollar since February, Aussies can still get some of the best exchange rates seen for years in certain countries.

It really is a case of doing your homework and finding out where your overseas travel money will stretch the furthest. With so many cheap flights available to Asian destinations, visiting places like Thailand or Vietnam could be very cost-effective. Of course, Bali has been a long-term favourite among Australians too.

Alternatively, you may find plenty of value in Europe at the moment. Getting there isn't cheap, but if you stay for a prolonged period it will prove to be an affordable option. The eurozone crisis has meant the euro currency is very weak against the dollar at the moment and with living costs in eastern and southern Europe being so low, you can certainly splash the cash during your trip.

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