Rising APD will cut number of foreign holidays – poll
Sunday, 02 Nov, 2009
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More than half of UK holidaymakers will cut the number of overseas holidays they take due to the rise in Air Passenger Duty.
And 13% said they would stop overseas holidaying all together due to the APD increase, which will see the tax increase by a minimum 10% this year before a further increase next November.
A poll for World Travel Market shows that 52% of the 1,030 people asked, all of whom took a holiday this summer, would reduce their overseas breaks due to yesterday’s increase in APD.
Younger holidaymakers are most likely reduce their holiday plans, with 60% and 53% of 16-24 and 25-40 year olds respectively stating the APD increase will have a negative impact on their flying habits.
In a separate poll of 459 senior travel industry professionals, almost two-thirds (65%) said they would also reduce their holidaying due to the increase in APD.
APD is being recalculated with the introduction of four bands, with passengers being charged according to how far they fly.
For example, a family of four flying economy class to Egypt – a popular year round destination for UK travellers – will see their APD increase by £20 to £100, rising to £120 next November
Premium economy, business and first class holidaymakers to Australia will see APD increase by £30 to £110, rising to £170 in November 2010 – more than double the current £80 tax.
WTM chairman Fiona Jeffery said: “The increases in APD could be a real concern to the UK outbound travel industry. The World Travel Market survey of holidaymakers found that 13% would not go on holiday next year, with more than half reducing their flying because of the tax.
"APD was doubled in 2007 and will more than double again by November 2010, so it’s easy to understand why holidaymakers could be put off travelling abroad by yesterday’s and next year’s increases."
Meanwhile, Cheapflights global sales director Francesca Ecsery warned that APD will do nothing but harm the tourism industry
“A number of airlines, tourist boards and industry associations are challenging the tax, and with good reason,” she said.
“Tourism is a leading employer in many developing countries – most of which will be hit by high increases as part of long-haul destinations.
“By lumbering passengers with this tax, long-haul trips will rise rapidly in cost, fewer people will travel and developing countries will lose an essential income stream.
“Much of the tourism industry is already operating on slim margins in the recession to ensure holidays remain affordable for the British public.
“By going ahead with APD rises, the UK will lose out in the long run as airlines switch to cheaper European bases and holidaymakers fly via third countries to avoid the charges,” said Ecsery.
“The Dutch government implemented a similar tax and it failed. The UK will be the only country in the world to have this tax and with a federal election looming, it could turn out into a political hot potato for the Government.
“We hope the Government listens to the crowd of voices speaking out against APD and abolishes the tax before it irrevocably tarnishes both inbound and outbound tourism in the UK.”
by Phil Davies
Phil Davies
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