Free ferry travel for cars over the summer is a "no brainer" according to the state's peak tourism body.
Tourism Industry Council chief executive Luke Martin said with bookings now open on the Spirit of Tasmania, the council was urging the federal government to increase the Bass Strait Passenger Vehicle Equalisation Scheme.
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"We want to effectively make it free for visitors this summer to bring their car across Bass Strait, and kick start our regional tourism sector," he said.
"We know Australians are likely to be looking for driving holidays, and we must compete with regional destinations across Australia that cost a tank of fuel to reach.
"We know we have many businesses in regional Tasmania hanging by a thread because of JobKeeper, and the banks deferring mortgage repayments.
"We must do everything we can to ensure we have a reasonable summer, and operators can start making some real money.
Mr Martin said since COVID first emerged, the TICT had identified that free cross-strait travel was the 'number one' way to get visitors to the state.
"While the Spirit has not been taking passengers the last six months, they've effectively saved millions through the BSPVES not being claimed for the tens of thousands of vehicles that would have otherwise travelled.
"It's a long standing scheme introduced by John Howard in 1996 on the principle that it should be the same cost to take your car from Tasmania to the mainland, as it is for other Australians to travel across the country on the national highway network."
He said it had not been indexed for years, so it now cost about $90 each way for cars.
"Allowing the Spirit of Tasmania to say you can take your car to Tasmania for free, is a no brainer."
Federal Transport and Regional Development Minister Michael McCormack was contacted for comment.