United Kingdom
United States
Asia Pacific
APD hike to ‘hit families hardest’
Wednesday, 30 Oct, 2009
0
Families struggling with the recession will be the biggest losers as the government hikes Air Passenger Duty from Sunday, ABTA claims.
A family of four flying to the US will pay £180 in tax and £240 from November 2010 when the aviation “poll tax” is set to rise again, according to the association.
ABTA chief executive Mark Tanzer said: “These APD rises will put pressure on jobs and damage local economies reliant on tourist expenditure both here and abroad when we are already suffering from the impact of the recession.
“They will place an even greater financial burden on families and others on tight budgets as they book their holidays or visits to friends and family.
“They will undo a lot of the good work being done by the industry to keep prices at an affordable level.”
Airlines may consider removing premium economy cabins providing additional leg room as APD increases will double for passengers choosing this option.
The Caribbean is disproportionately affected with tax rates higher than flights to the US, “highlighting the illogicality of the tax which is meant to be based on the distance travelled,” ABTA said.
Caribbean destinations will see a family of four having their bill increase to £200 from November 1 and £300 a year later.
Inbound tourism will also be damaged as foreign visitors are put off from travelling to the UK, ABTA believes.
Regional airports will suffer as airlines consider the profitability of maintaining routes with an increased tax burden at a time of declining passenger numbers.
The UK government is one of only two governments to tax air passengers in this way.
The steep APD rises will have a disproportionate effect on some of the poorest countries in the world whose economies are heavily reliant on tourism as long haul travel bears the most savage increases, ABTA warns.
Air Passenger Duty increases from 1/11/09 and 1/11/10
Four geographical bands will come into effect based on the distance from London to the capital city of the country concerned (with the exception of the Russian Federation which is split east and west of the Urals):
Band and approximate distance in miles from London Reduced rate Standard rate
Current Nov 2009 Nov 2010 Current Nov 2009 Nov 2010
Band A (0-2000) £10 £11 £12 £20 £22 £24
Band B (2001-4000)£40 £45 £60 £80 £90 £120
Band C (4001-6000)£40 £50 £75 £80 £100 £150
Band D (over 6000) £40 £55 £85 £80 £110 £170
by Phil Davies
Phil Davies
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