PM urged to challenge Aust departure tax hike

New Zealand's tourism industry lobby has called on Prime Minister John Key to challenge a 17 percent hike in departure taxes in Australia.

Australia's federal government budget last week hiked the departure tax to $70 ($A55) from $60 per person, effective July 1. That means a family of four departing Australia will pay about $NZ280 just to leave the country.

"We have asked the prime minister to raise it with his Australian counterpart - and we have had a positive response," said Ann-Marie Johnson, a spokeswoman for the Tourism Industry Association.

Tourism operators are concerned about the impact on the number of Australians coming into New Zealand since they are our biggest market."

The lobbying comes after Mr Key, who is also the tourism minister, attended the sector's showcase Trenz conference in Queenstown last week, where he flagged New Zealand's distance from major markets as a challenge the government is trying to overcome.

Some 1.17 million Australians made short-term visits to New Zealand in the 12 months ended March 31, a 5.4 per cent gain from a year earlier, government figures show.

The Australian tax hike will be keenly felt in New Zealand, according to Auckland International Airport, the country's biggest gateway.

"As the biggest trans-Tasman travel market, New Zealand will be the most vulnerable to this rise," spokesman Richard Llewellyn said.

"Tourism taxes risk creating disincentives to travel, thus damaging the significant economic benefit that the visitor industry delivers to residents and businesses."

Last week, national carrier Air New Zealand said it was lifting capacity on flights to Perth, and has increased trans-Tasman capacity four per cent over the past year.

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