Common border for Oz and NZ - TheMoveChannel.com

(EMAILWIRE.COM, March 19, 2009 ) Australia and New Zealand are considering creating a common border between the two countries in order to allow air travel to be classed as Â‘domestic,Â’ which would remove barriers to trade and tourism and could reduce air fares and flight times. However, there are numerous barriers to this idea, as TheMoveChannel.com finds outÂ…

The Chief Executive of budget Australian domestic airline Jetstar called for the common border last month when it announced that it would enter the New Zealand domestic market in June this year.

Along with other airlines, Jetstar is critical critical of having to incorporate customs and biosecurity charges in its fares, whereas over in New Zealand these costs are met by the Government. A domestic Tasman would remove the need for such charges.

If the move were to go ahead, it could reduce travelling time between the two countries and could slash airfares by more than 20 per cent.

The common border idea is being supported by a Tourism and Transport Forum held in Australia, which says it would do wonders for trade and tourism between the two countries. It is seen as being a logical step in the CER (Closer Economic Relationship) agreement between both countries.

Olivia Wirth, Executive Director of the Tourism and Transport Forum, said New Zealanders accounted for 20 per cent of AustraliaÂ’s inbound tourists, while Australians visiting New Zealand accounted for nearly 40 per cent.

Stop right there

Barriers to the idea include opposition from the major international airports in both countries, as some of them have been sold commercial interest with strong private equity shareholdings and would see a common border a potential loss in revenue.

Other issues include duty-free goods, security, immigration and biosecurity, which would all have to be agreed upon before the route's status could be changed from international to domestic.

There may be a trial carried out to see if the common border is a real possibility and the potential clearance system trialed would be similar to those used for passengers travelling from Canada into the United States and in Europe across European Union countries. Once cleared at the point of origin, passengers enter the next port as a domestic visitor.

As there are currently issues preventing the introduction of the common border, a compromise is being discussed.

The idea of Â‘pre-clearanceÂ’ would see travellers undergoing all customs, immigration, biosecurity and physical security checks before departure across the Tasman, and then entering freely on arrival.

For more information on property in New Zealand and the market in general, please visit http://new-zealand.themovechannel.com/

-ENDS-

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TheMoveChannel.com
Dan Johnson
020 7952 7650
dj@themovechannel.com