Fly to Let owners who fear their bookings could be affected by the Government’s decision to raise the tax on air travel with the introduction of the air passenger duty (APD) have gained allies in the form of tourism ministers from around the world.
The move, reports the European Tour Operators Association (ETOA) was widely criticised during a tourism ministers’ meeting at the recent World Travel Market in London.
“APD will not only hurt poorer countries but will also hurt the UK’s own tour operators,” said Taleb Rifai, Secretary General of the UN World Tourism Organisation (UNWTO), who hosted the meeting.
“APD is not an environmental measure, it is an anti-development measure,” said Rifai. “The British government is schizophrenic. It says it is committed to promoting development in poorer countries yet at the same time it has introduced a tax that is a terrible blow to their development.”
No British government representative was on hand to defend the decision to restructure and increase the scale of charges for international flights leaving from UK airports, as the UK has withdrawn its membership of UNWTO.
The new APD banding structure was introduced to peg charges to distances travelled. The Government has resisted appeals from the tourism sector to abandon the tax increases, which are part of a stepped hike over the next two years that will mean APD is doubled on fares to the most distant destinations.
During a recent Questions in the House of Lords session, the Financial Services minister, Lord Myners, admitted that APD is a tax revenue generating measure that has little to do with environmental protection.
He said: “The purpose of the air passenger duty is primarily fiscal but gives a strong nudge towards environmental considerations and will, we believe, lead to a reduction of some 0.6 million tonnes of carbon per annum as a result of the increase in the rates.
Travellers between the UK and the USA will pay £45 in APD, £50 on Caribbean flights and £55 to Australia and New Zealand. These rates are due to rise again in November 2010 to £60, £75 and £85 respectively.
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