Industry fuming about APD rise
The Government dealt the travel industry a bitter blow yesterday when it confirmed that the double-inflationary rise, announced last April, will go ahead.
Virgin Holidays managing director Amanda Wills said it was vital the industry kept pressure on the Government.
"It’s very disappointing that despite the efforts made to date, the clear evidence of the damage it causes to the economy and job prospects here and the opposition of consumers and trade alike, the Treasury has decided to press on with a tax rise that penalises already hard-pressed consumers for taking a holiday, and which costs the UK by deterring inbound visitors," she said.
"It will also have a significant and ongoing impact on overseas communities whose economies and prosperity depend on international tourism – such as those in the Caribbean. Currently, no-one wins and we support the continued calls being made urging the Government to commission an independent study in to APD’s overall economic value.”
Osborne used his Budget earlier this year to delay a rise in APD for a year, until April 2012, but the travel industry had hoped he would announce a further freeze in the tax yesterday.
However, his speech to the House of Commons made no reference to APD and the Treasury cofirmed a double-inflation increase ahead of the Government's response to the air passenger duty consultation on December 6.
UKinbound chief executive, Mary Rance said it was "bitterly disappointed" with the Chancellor’s decision.
"We cannot comprehend his failure to acknowledge the damage this will cause to the already decreasing numbers of inbound tourists to the UK," she said.
“The UK already has the highest level of aviation tax in the world while competing European nations are reducing and even abolishing this prohibitive tax. Today’s announcement is yet another blow for the industry and it is difficult to see how the government can continue to claim to support the growth of inbound tourism to this country when making such decisions."
Eddie Redfern, head of regulatory affairs for aviation at TUI Travel PLC, said: “We believe that every single family has the right to go abroad on holiday and to enjoy some quality time together. Unfortunately the Government is making this harder by increasing the levels of tax on air passengers. "We are very disappointed by the announcement today but look forward to the 6th December when the APD structure will be unveiled. We are also hoping that APD banding is reviewed and that the amending of the anomaly of Premium Economy charges is addressed.”
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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