Confusion reigns over APD changes

There is still confusion in the trade over planned changes to Air Passenger Duty being imposed by the government in November.

Different charges are to be imposed based on the distance travellers are flying to from the UK.

But the changes, which will penalise Caribbean nations in particular, have prompted strong criticism from industry bodies such as ABTA which has called for collective action to lobby against the changes.

An exclusive online poll by TravelMole found that less than 30% of the almost 350 who voted understood the changes which will introduce multiple bands of charges.

Hugh Riley, the Caribbean Tourism Organisation’s acting secretary general, said: “The CTO has, on an ongoing basis, expressed its strong dismay at the punitive impact that the government’s proposed APD changes will have on travellers to the Caribbean.

“The worrying revelation that under 30% of the travel trade understands the new banding system confirms the confusion that it will cause to both the industry and its clients.

“The combination of misinformed agents and prohibitively high taxes does not bode well for our tourism-dependent region, not least given the particularly challenging economic environment in which we’re already working extra hard to secure visitors.”

Jamaican Tourism Minister Bartlett added: “I am very concerned by the results of the TravelMole poll.

“This tax is not only unfair for the Caribbean but it could have a very damaging effect on the British travel agent – especially those dependent on commissions from long haul holidays.

“It’s critical that the industry pulls together to continue working to get this tax changed for the better.”

APD charges are due to be raised both this autumn and again in November 2010.

This means that APD will increase by up to 112% over the next 16 months.

On short-haul flights (under 2,000 miles) it will rise by £2, but on a flight to Singapore, Malaysia or Australasia, a family of four will pay £340 – more than double the current rate.

The charges will be levied across four bands:

*Band A, covering flights to Europe, will rise to £11, from £10.
*Band B, covering flights of up to 4,000 miles including destinations such as Egypt and the US, will rise to £45, from £40.
Band C, covering flights to the Caribbean, will be increased to £50, from £40
*Band D, covering flights to Australia and New Zealand, will rise to £60, from £40.

APD will go up again in November 2010 – to £12 in band A, £60 in band B, £75 in band C and £85 in band D.

Passengers flying in premium cabins will be taxed at double these rates.<

by Phil Davies