Australia’s tourism industry has questioned the timing and rationale behind a surprise increase in visitor visa application charges, warning that the additional costs come at a time when the country is competing fiercely for international visitors.
From July 1, the application charge for Australia’s Visitor visa (subclass 600) increased 25 per cent from A$200 to A$250 (US$140 to US$175), while the Working Holiday Maker visa rose from A$670 to A$840 as part of the Federal Government’s update to visa application charges.
The changes are particularly relevant for many of Australia’s priority growth markets in Asia, including China, India, Indonesia and Vietnam, whose passport holders generally require a Visitor visa to enter Australia. By comparison, eligible travellers from countries including Singapore, Japan and South Korea can enter using the A$20 Electronic Travel Authority (ETA).
A spokesperson for the Department of Home Affairs said Australia remains an attractive destination and that the higher charges were unlikely to materially affect visitor demand.
“There is strong global demand and growing interest in visiting, studying, working and migrating to Australia,” the spokesperson said.
“For tourism and business visitors, aggregate increases to the Visa Application Charge are small and are a very minor consideration when compared to the overall costs of their visit.”
The department added that it is standard practice not to announce visa application charge changes ahead of their implementation.
Tourism & Transport Forum Australia CEO Margy Osmond said the different entry costs created an uneven experience for markets Australia was actively trying to grow.
“It certainly creates a different experience depending on where you’re travelling from,” she said.
“Some of the markets Australia is investing heavily in to grow are also the ones facing the highest visa costs and the biggest hurdles.
“If we’re serious about increasing visitation from Asia, we need to ask whether our visa settings are helping us compete or making it easier for travellers to choose another destination.”
Osmond said every additional cost made Australia more difficult to sell in an increasingly competitive global tourism market.
“Australia is in a global race for visitors and every extra cost makes us a harder sell,” she said.
“These fee increases might not sound like much for those unaffected, but for families or groups deciding where to travel, it’s another reason to choose somewhere else.”
She noted the visa increases follow the Federal Government’s decision to increase the Passenger Movement Charge from A$70 to A$80 next year, arguing that travellers consider the total cost of visiting a destination rather than individual charges in isolation.
Osmond also questioned the lack of advance notice given to the tourism industry, saying travel is typically planned months ahead and that travel agents, tour operators and visitors should have sufficient time to prepare for changes affecting the cost of travel.
The Australian Tourism Export Council (ATEC) also criticised the increases, warning that they risk eroding Australia’s competitiveness against destinations including Canada, New Zealand, Japan and the UK.
ATEC managing director Peter Shelley said the latest increases should be viewed in the context of successive rises in recent years, with the Working Holiday Maker visa now costing almost 65 per cent more than it did in 2022.
“The concern isn’t simply this latest increase; it’s the cumulative impact.
“International travellers compare destinations on value, affordability and ease of access, so when visa costs continue to rise, it reinforces the perception that Australia is a more expensive and more difficult destination to visit.”
He added that working holiday makers contribute significantly to regional tourism businesses and seasonal workforces, arguing they should be treated separately from broader migration policy.
“If the government is serious about growing the visitor economy and supporting regional Australia, policy settings should encourage international visitors, not gradually price Australia out of the global tourism game,” he said.
