27 November 2008

UKinbound joins chorus of criticism over APD hikes

UKinbound has become the latest trade body to hit out at government plans to hike Air Passenger Duty charges in a yearââ¬â¢s time.

The trade association warned that the move will damage inbound tourism, with long haul and business travellers to the UK being hit particularly hard. 

Changes to APD announced on Monday in the Governmentââ¬â¢s Pre-Budget Report have been widely condemned across the travel industry (see previous TravelMole stories). 

UKinbound fears that along with additional taxes, the governmentââ¬â¢s actions will encourage inbound travellers to choose other destinations.

The changes will mean taxes on flights between the UK and Europe will rise by 10% to Ã&#pound;11 in November 2009 and Ã&#pound;12 in 2010.

US travellers, the UKââ¬â¢s main market for tourism, will see their taxes rise from Ã&#pound;40 to Ã&#pound;60 in 2010. 

For standard long haul visitors travelling over 6,000 miles (including Australia, New Zealand and Malaysia, three key inbound markets), taxes will rise from Ã&#pound;40 to Ã&#pound;85 in 2010.

Business visitors will also be severely affected with taxes for travellers on any flights above economy rising to anything up to Ã&#pound;170 from 2010.

UKinbound chief executive Mary Rance said: ââ¬ÅâœAt a time when the pound is at its weakest level for years, international travellers should be encouraged to holiday here and take advantage of the fantastic value currently offered in the UK. 

ââ¬ÅâœInstead the government is imposing higher taxes on long haul visitors and discouraging them to visit.

ââ¬ÅâœThe current system of taxing each passenger is said by the government to be a way of helping to reduce carbon emissions. 

ââ¬ÅâœThere is no proof that this works, but there is proof to suggest that this deters overseas visitors from travelling to the UK in favour of other European countries with less tax to pay.ââ¬~

ABTA, airlines and leading tour operators have also condemned the move to a four-tier APD from November 1, 2009.

by Phil Davies 

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• Simply use Continental European airports
  
  

  The obvious answer to the UK Labour government's continuing lack of support to the travel industry is to use Continental European airports then the Eurotrain into London. The continuous leaching of money from travellers' pockets will become more noticeable with the world-wide economic stresses. These charges, coupled with the abysmal 'service' offered by BAA airports, might have one benefit - no more Heathrow expansion!

  By Jon Hewson, Friday, November 28, 2008