Wednesday, 26 October 2011

Government warned over rise in APD

Tourism Alliance has warned that a further rise in Air Passenger Duty could have a damaging effect on the UK economy. The Prime Minister has most recently been optimistic about the large number of foreign visitors to the UK next year due to the Olympics and Queen's Golden Jubilee. Despite these one off events, the survey has found that many tour operatorsm hoteliers and restaurateurs are anticipating a significant drop in visitors should APD be raised for a fourth time in five years.

A spokesman for Tourism Alliance said: "Simply hosting the Olympics and the Queen's Jubilee does not guarantee that foreign visitors to Britain will increase. The painful truth is that without major changes to underlying Government policy - such as addressing the exorbitant levels of APD - Britain's tourism sector will struggle to compete."

An announcemant on the tax is due on 29th November and an increase of 10% (double the rate of inflation) is expected to be announced. Britain is also expected to join the European Union's Emissions Trading Scheme which will also increase the cost of flying to passengers.

Britain has the highest aviation taxes in the world and Tom Jenkins, director of the European Tour Operators Association feels that this is not helping anyone other than the governments coffers: “There is no doubt that people are being deterred from coming to Britain by the extraordinarily high cost of APD. There is now a major cash incentive to ignore Britain as a holiday destination. We are seeing London lose out as a gateway for Europe in favour of Paris, Frankfurt and Amsterdam.”

Wakey wakey George, it's not just the passengers that are affected by this

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