Tour operator claims APD has no impact on Caribbean
Caribbean tourism chiefs have slammed the double inflationary rise in air passenger duty confirmed in last week’s Budget, claiming it will further damage their tourism industry, but one UK tour operator says there’s no evidence the tax is having a negative impact.
Hayes & Jarvis said its bookings for the Caribbean from April, when the next increase takes place, are up 24% year on year.
Commercial director Niel Alobaidi said: "While there has been negative reporting about the possible implication of the APD tax in April, we do not believe we are seeing any direct impact from this at all.
"Looking at bookings in 2012 to date, the overall value of the holiday is the key driver of customer demand, and customers are not actively breaking down the cost of individual components within the package."
The tax on flights to the Caribbean will increase on April 1 from £75o £81 for an economy seat and from £150 to £162 in all other classes, including Premium Economy.
The Caribbean Tourism Organisation has long argued that the tax is unfair because people pay more to travel to the Caribbean than they do to fly to Hawaii, which is a longer flight. CTO chairman Ricky Skerritt issued a statement today saying that APD "continues to damage the growth and development of Caribbean economies".
However, Hayes & Jarvis said bookings for the Caribbean islands which offered the best value for money were significantly up year on year. Sales to the Dominican Republic are up 800%, it said, while Cuba sales have risen 66% and St Lucia is up 55%.
Hayes & Jarvis said bookings for Mexico had risen 258% since British Airways launched direct flights to Cancun in autumn 2010.
Alobaidi added: "We have seen massive year on year growth in bookings heading West to the USA, Caribbean or Latin America, clearly highlighting the importance of "value" in driving customer demand. Much of this has come about because of the competitive pricing of luxury All Inclusive packages, which are perceived as a bargain."
H&J said that booking trends suggest customers are destination-swapping to get the best deals. Mexico is doing well because four and five-star all-inclusive prices are lower than in the Caribbean, it said.
Not surprisingly, Kenya sales are down due to adverse publicity surrounding the murder and kidnapping of British tourists, and Egypt has only just started to see an upturn in bookings in the past month following the Arab Spring last year.
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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