Increase in flying tax to make holidaymakers think twice

Thursday 28, October 2010


Increase in flying tax to make holidaymakers think twice


Almost half of Holidaymakers to reduce overseas holidays due to next week’s increase in Air Passenger Duty.


Almost half of UK holidaymakers will slash their 2011 overseas holiday plans due to next week’s increase in Air Passenger Duty (APD), reveals a survey by leading travel trade exhibition World Travel Market.


A massive 45% of the 1,000 people polled, all of whom holidayed this summer, said next Monday’s (1 November) increase in flying tax APD will see them reduce their overseas flying.


Of those, more than one in three people (37%) said they would reduce their flying due to the APD increase, which follows hot on the heels of a previous increase in November 2009.


Furthermore, almost one in ten (8%) said the increase would price them out of overseas holidays all together.

Last year’s hike in APD, which saw the Treasury rake in £1.9 billion in 2009/10, has already had a negative impact on overseas tourism to some long haul destinations with some Caribbean islands seeing a reduction in UK visitors of up to 25%.


The UK government has also proposed replacing APD with a potentially more expensive Per Plane Tax (PPT), to help it reduce the UK’s record debt – government figures predict the tax will rake in £3.8 billion in 2015/16, double the current £1.9 billion.


More than half of holidaymakers would reduce their overseas holidays under this plan, with 41% cutting back on overseas breaks and 10% stopping foreign holidays all together.

Furthermore, a separate poll reveals the travel and tourism industry is concerned about the impacts of tax increases, such as APD and PPT proposals.


More than 40% of the 1,200 industry senior executives polled said increased taxation – particularly APD - is a major negative issue for the industry over the next five years.


More than one in ten (11%) highlighted it as the single biggest issue which will have a negative impact on their business until 2016.


World Travel Market Chairman Fiona Jeffery said: “A further increase in APD could be a real concern to the travel and tourism industry. APD was doubled in 2007 and is now double the 2007 figure leading to the cost of flying abroad increasing.


“The World Travel Market surveys shows both holidaymakers and the industry are significantly concerned by both next week’s increase in APD and the proposed switch to a Per Plane Tax.”


World Travel Market, the premier global event for the travel industry, takes place between Monday 8 – Thursday 11 November at ExCeL, London.  World Travel Market is the event where the travel industry conducts its deals. WTM 2009 led to more than £1,139 million in travel industry deals.



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