Report: Australian Hotel Prices to Rise Following Carbon Tax

The Herald Sun is reporting that Australian hotel prices are set to "skyrocket" following the introduction of the carbon tax.

A survey by Tourism Accommodation Australia found nearly three quarters of Australian hotels have increased prices or are planning to do so as a result of the tax.

TAA managing director Rodger Powell said there was a strong feeling of uncertainty in the industry about how big an impact the introduction of the carbon tax will have. "The majority of hotel operators are waiting to see the net effect of the tax on their input costs before finalizing new pricing", he said. "Some hotels have already raised prices in response to increases in their operating costs but the majority are mindful of the ACCC's threats of price-gouging penalties.

Powell said he was worried that international travelers would avoid visiting the country, posing a risk of jobs in the industry.