Travel industry irked by new APD hike

Thursday, 07 Mar, 2024 1

Jeremy Hunt’s ‘one-off adjustment” to Air Passenger Duty on non-economy flights was the big Budget 2024 story for the travel industry.

It has been slammed by the industry as another stealth tax to make UK tourism less competitive than ever.

This will lead to another hike in business class air fares in the UK.

APD is split into three tiers generally dependent on the distance flown.

It currently ranges from £13 for domestic flights, £26 for short haul international flights within 2,000 miles and £200 for long haul flights

APD was already due to increase slightly for the lower and higher bands from next month.

What the ‘one-off’ increase amounts to is still unclear but is expected to take effect in a year’s time.

Brighter news was the announcement of a cut in national insurance.

The Scottish Passenger Agents’ Association (SPAA) voiced disappointment with the Budget.

“This is a short-sighted move that will damage the ongoing recovery of the travel industry,” said SPAA’s president Jac Dobson.

“The level of UK APD is already one of the highest in Europe. Thisi contributes further to making the country less competitive.”

“The UK government has failed to acknowledge that by increasing APD, the highest aviation tax in the world, they are penalising families travelling in Premium, as well as business travelers,” Virgin Atlantic said.

Clive Wratten, CEO of the Business Travel Association added: Contrary to common misconceptions, business travel is not just for the wealthy. This tax will hinder growth.”

UKinbound applauded some aspects like the NI cut but was disappointed with no reintroduction of a duty free shopping scheme.

“The absence of a new fiscally positive tax-free shopping scheme is a huge missed opportunity. It would bring much needed additional export revenue to the UK,” CEO Joss Croft said.

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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