Aussie tourism suffers as tourism trade deficit rises. Image: Andrew Meares

The Coalition has warned that “the government must stop over taxing tourism” as the nation faces an $8 billion two-way tourism trade deficit this year.

Following reports that Ireland was the fastest growing international destination for Australian travellers last year, Shadow Minister Bob Baldwin revealed Australia’s domestic tourism has taken a beating.

“Growing interest in Ireland as a destination is one thing, but what’s worrying is the importance Ireland now places on Australian travellers, as one of the most important growth markets for Irish tourism,” Mr Baldwin said.

“Since Julia Gillard welshed on her carbon tax promise and burdened Australian tourism with a raft of new taxes and charges, our domestic industry has suffered enormously.”

Mr Baldwin said that last year the Labor Government introduced or increased 12 tourism taxes and charges on local businesses, raising the cost of Australia as a destination.

“Our two way tourism trade deficit will be $8 billion this year,” Mr Baldwin said.

“This means after subtracting receipts from 6 million inbound tourists Australia will lose at least $8 billion from Aussies spending their holiday savings on goods and services in foreign hotels and shops.”