PATA and travel trade lampoon UK tax

THE UK's unpopular UK Air Passenger Duty (APD) came under fire on Monday night at the House of Commons, with travel industry leaders calling for a freeze on its planned increase and a reduction in duty levels.

Hosted by PATA CEO Martin Craigs, the dinner saw 50 global business leaders, members of parliament, ministers and international press come together in an aligned advocacy event aiming to draw attention to unfair taxation and travel-related schemes that were hurting tourism, especially UK outbound to longhaul destinations.

The UK APD is levied on outbound passengers and is said to be the world’s highest tax by a wide margin. The tax has also risen 140 per cent for economy class passengers and 325 per cent for business class passengers since 2007, and will be increased further next year.

According to Craigs, 73 per cent of PATA member destinations were in the two most heavily taxed bands of the UK APD.

An economy passenger from the UK flying to Australia has to pay 92 pounds (US$147) in taxes, while a business class passenger has to fork out 184 pounds. These amounts are to be revised to 94 and 188 pounds respectively come April 2013.

Craigs said the UK APD had turned away tourism and trade from Asia-Pacific, the world’s highest growing economic region.

“It is now time for a ‘declaration of interdependence’ among travel industry bodies. The travel industry is being victimised disproportionately by this tax. It negatively impacts travel industry jobs in the UK and abroad at a time when we desperately need to create growth,” he said.

“The best is yet to come, as we cajole and, where necessary, coerce political non-believers and short-termers into realising that travel and tourism is the fastest job-creating industry in the world.”

Sourced: TTG Asia