New Zealand prime minister John Key has made a personal appeal to his UK counterpart David Cameron and UK Chancellor of the Exchequer George Osborne, asking them to reconsider the
hikes in UK air passenger departure tax.
The new tax rates will have a major impact on long haul travellers from markets such as New Zealand and Australia.
The New Zealand PM spoke to the UK leaders during his visit to the recent royal wedding in London.
“I had a very good indication that they will come up with a fairer system,†Key said.
The New Zealand PM said the tax increase was being pitched as an environment tax, but the money was not being used for environmental purposes.
Tourism Industry Association chief executive Tim Cossar said the tax puts New Zealand at a competitive disadvantage because travellers leaving UK for New Zealand would be paying significantly more in departure tax.
A report by consultants Frontier Economics said the changes would reduce UK gross domestic product by £2.6 billion a year, lead to the loss of up to 77,000 jobs and affect regional airports more than London airports.
