‘Inbound tourism faces equal hit from APD rise’
Next month’s hike in Air Passenger Duty will be a further disincentive for foreign tourists to visit the UK.
UKinbound made the warning while describing a report on the impact of the APD rise by Halifax Travel Insurance as “misleading” as it only addresses the effect on outbound travel.
The trade association for companies selling holidays and travel to the UK says the survey “ignores entirely” the more significant effect on the export-earning inbound sector.
UKinbound chief executive Stephen Dowd said: “The increase in APD is yet another factor that weakens our international competitiveness and deters visitors from travelling to this country.
“UK holidaymakers have no option but to pay the increased tax if they wish to travel abroad and most will choose to do so, even if many opt for a cheaper destination. Potential overseas visitors also have a wide selection of destinations available to them and will see this additional tax as a further disincentive to choose the UK.”
He added: “Early indications are that we will lose a considerable amount of business to cheaper destinations as a direct result of this unjustified tax increase and if UK citizens continue to travel overseas in large numbers, as indicated by this survey, this will further increase the tourism trade deficit which currently stands at £18 billion a year.
“Presented in isolation in this way, the survey is misleading in that it fails to acknowledge the true damage to the UK economy that the increase in APD will cause.”
Report by Phil Davies
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