The travel industry has reacted angrily to Government plans to increase aviation duty.
In yesterday’s Budget, the Chancellor announced that the forecast total tax revenue from the new aviation duty, which is due to replace Air Passenger Duty in November 2009, will be increased by 10% in 2011-12, the second full year of operation.
Guild of Travel Management Companies chief executive, Philip Carlisle, said the move was “another short-sighted tax grab by government”.
“The Treasury’s press notice supporting the Budget Statement explicitly states that the purpose of this tax increase is to raise money to pay for public services,” he said.
“GTMC acknowledges that aviation should bear the cost of its emissions but we believe strongly that the revenue raised should fund either environmental projects or be used to develop much-needed transport infrastructure.
“Aviation should not be used as a means for the Chancellor to raise general revenue to help him balance the books.”
Tom Jenkins, executive director of the European Tour Operators Association, warned the increase in the ‘visitor tax’ will hit incoming tourism, particularly for long-haul visitors.
“The amount of tax and fees paid by European visitors to the UK is now 65% higher that the average level of tax and fees they would pay to visit the key competitor destinations of France, Spain, Italy, USA and Australia,” he said.
“For visitors from long-haul destinations the amount of tax and fees imposed on visitors in the UK is now over 90% higher than the average of the other destinations while, for visitors from the 109 countries that require a visa to enter the UK, the total cost of taxes and charges now stands at more than £200 per person.
“In the context of a declining share of world tourism, the last thing the UK needs is any more tax on travel.”
Meanwhile, Cheapflights general manager of UK Francesca Ecsery said the money raised should not go straight into Government coffers.
“Cheapflights supports moves to reduce aviation’s already small global emissions footprint 2% globally set out in the Sustainable Aviation Report.
“However, it strongly believes the additional tax revenues should be applied to achieving the stringent 50% noise, CO2 and NO2 reduction targets set out in the report by and for the aviation industry for 2020.”
But the company said it welcomed the Chancellor’s other Budget initiatives to speed up passenger transit through Heathrow using biometric technology.
“The airport is an essential component contributing to the UK’s future economic health and improvement is urgently needed,” Ecsery added.
“Current criticism of difficulties for passengers at Heathrow are justified and need to be addressed.”
By Bev Fearis
