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UK government criticised for APD
The World Travel & Tourism Council (WTTC) has stated that the UK government’s decision to increase the Air Passenger Duty (APD) for departures from UK airports from November shows that it continues to underestimate the economic importance of travel and tourism.
Published: 04 Aug 2009
The World Travel & Tourism Council (WTTC) has stated that the UK government’s decision to increase the Air Passenger Duty (APD) for departures from UK airports from November shows that it continues to underestimate the economic importance of travel and tourism.
APD is set to rise in November this year and again in November 2010, with increases on Caribbean flights proving particularly contentious.
WTTC maintains that the government’s move to increase the APD is very short-sighted given the current recession, since travel & tourism - more than any other sector - has the potential to kick-start the economic recovery by stimulating continued spending on travel, thereby generating much needed employment.
“Of equal concern is the fact that the APD is billed as an environmental tax, yet none of the money so far collected has been hypothecated and ploughed back into either the environment or the industry,” said Jean-Claude Baumgarten, president and CEO of the Council.
The Council added that the imposition of this tax will reduce UK tourism spending in developing countries undermines the UK government’s claims to be supporting the Millennium Development Goals, aimed at alleviating poverty and generating employment in emerging markets
“The APD acts as a distortion to free trade and this will ultimately work against the Millennium Development Goals,” said Baumgarten.
The increased APD, which primarily penalises long-haul travellers, will mean a 112% rise in departure tax on a flight to Australia from the end of 2010.
Recently, Ryanair had warned that the government’s “suicidal” £10 air passenger duty (APD) is hurting British tourism.
Ryanair has announced it is starting 39 new routes this winter to and from the Canary Islands to take advantage of Spanish tax concessions. The no-frills Irish carrier blamed high taxes for its decision last week to cut its Stansted flights by 30 percent this winter.
Ryanair has also made cuts to its Dublin services, blaming “suicidal tourist taxes”.
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