APD set for redesign

Air Passenger Duty is to be redesigned in March, according to a Government source.

At a specially convened meeting at Caribbean Marketplace between the UK press and Minister Ed Bartlett of Jamaica, the group were informed that according to ‘source’ the Government will make an announcement on March 23 with regard to the future of APD.

Bartlett explained to the group that after a long process of meetings, reports and general lobbying, the Coalition Government has undertaken to proceed with a detailed consultation process that will last approximately 6-8 weeks after which a ‘re-design’ of APD will be announced.

The Caribbean Tourism community in the form of CTO have suggested a new two-tier approach, one for long haul and one for short haul flights.

The revenue neutral proposition will mean a raise in APD for short haul destinations and a lowering and reorganisation of fees for long haul.

"We have the definite feeling that there is global tourism groundswell of opinion that supports a new approach to APD," said Bartlett.

"We have been approached by South Africa to attend a meeting at ITB in March alongside other nations to discuss more formally our joint approach. In addition we have support from WTTC, ABTA, BTA and UNWTO."

Bartlett suggested that the Government will not implement the European community ETS tax.

He also believes that because of the improving economic outlook for 2012 and beyond, the level of APD tax will remain at 2011 levels for the foreseeable future but under a new structure.

"What happens if the consultation fails to budget Chancellor Osbourne? We do have plan B that will involve engaging in international diplomacy with global trade groups and associations, but we don’t believe that this will be required." added Bartlett.

Air Passenger Duty is to be redesigned in March, according to a Government source.

At a specially convened meeting at Caribbean Marketplace between the UK press and Minister Ed Bartlett of Jamaica, the group were informed that according to ‘source’ the Government will make an announcement on March 23 with regard to the future of APD.

Bartlett explained to the group that after a long process of meetings, reports and general lobbying, the Coalition Government has undertaken to proceed with a detailed consultation process that will last approximately 6-8 weeks after which a ‘re-design’ of APD will be announced.

The Caribbean Tourism community in the form of CTO have suggested a new two-tier approach, one for long haul and one for short haul flights.

The revenue neutral proposition will mean a raise in APD for short haul destinations and a lowering and reorganisation of fees for long haul.

"We have the definite feeling that there is global tourism groundswell of opinion that supports a new approach to APD," said Bartlett.

"We have been approached by South Africa to attend a meeting at ITB in March alongside other nations to discuss more formally our joint approach. In addition we have support from WTTC, ABTA, BTA and UNWTO."

Bartlett suggested that the Government will not implement the European community ETS tax.

He also believes that because of the improving economic outlook for 2012 and beyond, the level of APD tax will remain at 2011 levels for the foreseeable future but under a new structure.

"What happens if the consultation fails to budget Chancellor Osbourne? We do have plan B that will involve engaging in international diplomacy with global trade groups and associations, but we don’t believe that this will be required." added Bartlett.