UK Travel Tax Slammed by Pacific Tourism Leaders

The tourism industry in the Pacific region is currently raising big concerns over the negative impact of the UK government’s proposed further increase in Air Passenger Duty. This increase is suppose to go into affect as of November 2010. Members of the Pacific Tourism Leaders’ Forum are calling the tax ill conceived and draconian.

Tourism is among the top three income generators for most countries in the Pacific region and is the top sector for employment in almost all of them. Things like long-haul tourism contribute a very significant amount of money to the area. The increase of Air Passenger Duty brings up considerable risks for the area.

The group goes on to say that the planned increase in Air Passenger Duty in November adds significant additional costs to business and leisure travelers visiting the Asia pacific region. A family of four traveling from the UK to any destination in Band D, or distance of 6,000 statute miles or more, face a travel bill of 340 sterling. In January 2007, this would have cost that same family only 80 sterling. Thus, this is a very big increase that many people will not be able to afford.

Matt Hingerty, the Managing Director of the Australian Tourism Export Council and a member of the PTLF, said that the UK Air Passenger Duty tax has raised alarm bells across the region’s tourism sector. The tax is politically motivated and is clearly the result of poor policy making. It is difficult to understand that a global economic power such as the UK could act with such insensitivity. This draconian tax serves only to generate revenue with absolutely no benefit to the environment that it is suppose to protect.