Australia’s government is sabotaging tourism
18 August 2023
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In the Media
Phillip Booth writes for The Telegraph
17 August 2023
Economics
Housing and Planning
Matthew Lesh writes for CityAM
IEA Director of Public Policy and Communications Matthew Lesh has written for CityAM on why Australia’s decision to block flights from Qatar Airways lacks economic rationale.
Matthew wrote:
“The cost of flights between Europe and Australia has skyrocketed this year. Australians seeking some sun over winter and Brits booking to see family and friends over Christmas are aghast at eye-watering fares.
“In this context, the Australian Labor Government’s decision to reject Qatar Airways’ application for an additional 21 weekly flights to Australia has raised quite a few eyebrows. The government claimed it would be against the “national interest”. They haven’t provided any specific reasoning.
“Markets only function effectively when there are minimal barriers to entry so that when prices start increasing, more players can enter the market. There have always been high fixed costs in aviation that make this more difficult than other industries – there are never likely to be hundreds of airlines vying for passengers. But more than anything else, it has been the choice of governments to limit competition.”
You can read the full article here.
Matthew wrote:
“The cost of flights between Europe and Australia has skyrocketed this year. Australians seeking some sun over winter and Brits booking to see family and friends over Christmas are aghast at eye-watering fares.
“In this context, the Australian Labor Government’s decision to reject Qatar Airways’ application for an additional 21 weekly flights to Australia has raised quite a few eyebrows. The government claimed it would be against the “national interest”. They haven’t provided any specific reasoning.
“Markets only function effectively when there are minimal barriers to entry so that when prices start increasing, more players can enter the market. There have always been high fixed costs in aviation that make this more difficult than other industries – there are never likely to be hundreds of airlines vying for passengers. But more than anything else, it has been the choice of governments to limit competition.”
You can read the full article here.
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