Image via reuters.
Mar 12, 2012
New research by the World Travel & Tourism Council (WTTC) shows that removing Air Passenger Duty would result in an additional 91,000 British jobs being created and ÂŁ4.2 billion added to the economy in 12 months.
The research comes as Britain is about to face yet another rise in Air Passenger Duty. Increases planned from April mean a family of four flying to Malaga will pay ÂŁ52 extra on the price of their tickets. This rises to ÂŁ260 for the same family to fly to Florida and ÂŁ368 to fly to Australia.
David Scowsill, WTTC President & CEO, said: âAir Passenger Duty is a completely disproportionate tax on people's holidays and is hitting business travel hard. When the economy needs help, it is economically illogical to continue with a tax that costs the country some 91,000 jobs and as much as ÂŁ4.2 billion."
In the next 12 months, the UK government will collect ÂŁ2.8 billion in extra tax from air travelers, far more than any other country in the world.
David continued: "Travel and tourism grew by 4.1 percent in the UK last year, but is forecast to slow to 1.3 percent in 2012. This slowdown is partly due to the impact of Air Passenger Duty, which is dampening demand.
âThis tax is damaging the economy at a crucial time and is having a negative effect on trade with countries in the Caribbean, Africa, and Asia. We urge the UK government to recognize the impact on the overall economy and reduce Air Passenger Duty."
Martin Craigs, CEO of the Pacific Asia Travel Association (PATA), said: "The UK is an island trading nation; air services are the vital lifeblood of modern global commerce. The UK Air Passenger Duty is now the world's highest by a wide margin. It is certainly turning away tourism and trade from the world's fastest-growing economic region, Asia Pacific.
âAirport Passenger Duty started in1994 at ÂŁ5 and some worthy intentions to offset aviations carbon footprint. Today at ÂŁ85 to zone D (Asia/Pacific) it's a âdetention tax' that's restricting job growth, alienating important trade partners and not being transparently directed to green projects. Airport Passenger Duty maybe easy to collect but it's also easy to see its macroeconomic damage.â