APD increase slammed at home and abroad
The unpopular UK Air Passenger Duty increase is still being criticised at home and abroad as a tax to ‘impede growth’ and stifle tourism.
Tourism groups in Australia and New Zealand have joined the opposition claiming it will add to the decline in British visitor arrivals there.
And the 8% charge hike, which came into force yesterday has been described as a ‘tax on recovery’ by corporate travel and events business, ATPI Group. APD will rise by a further £4 in a year’s time.
TTF chief John Lee, Tourism & Transport Forum Australia (TTF) said, "The APD impedes tourism, travel, trade and economic growth and unfairly penalises British residents wishing to visit long-haul destinations like Australia and New Zealand.
He claims it will also deter Australians and New Zealanders from visiting Britain.
"It also slugs visitors to Britain from long-haul source markets and Malaysian-based carrier Air Asia X has cited today’s hike as a factor in its decision to cease flights between Gatwick and Kuala Lumpur," he added.
Peter Muller, chief operating officer for Europe and the USA, ATPI said:
"Businesses don’t mind paying their fair share of tax on airline travel, but APD has seen a 26-fold increase since it was introduced which defies any sort of economic logic and is disproportionate when compared to other forms of transport.
ATPI Group manages travel arrangements for a host of major businesses worth over £725 million annually.
Muller added: "The Government constantly talks about its growth agenda, but APD is especially hard on UK businesses who want to expand their presence overseas. We would urge a change in policy to scrap APD, as the Dutch have done, to reinvigorate the economy."
By Diane Evans and Ian Jarrett
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