Comment by TTG editor Lucy Huxley
It’s a classic case of not thinking something through. The way the government has worked out how APD should be calculated could have disastrous consequences if we don’t act now to get it changed.
The inflexible band system, based on distances between the capital cities of the countries people are flying from and to, will see customers flying to the Caribbean paying more tax than those on their way to Hawaii – 3,000 miles farther east.
It’s nonsensical. And at £150 a head in premium economy, it will mean an extra £600 for a family of four going to the Dom Rep after November 2010.
When cost-conscious consumers are looking to get the best-value holidays, the increased APD could put them off going to a particular destination altogether, prompting them to opt for somewhere in a cheaper (but not necessarily nearer) band instead.
And that could be seriously damaging for places such as the Caribbean and Kenya, whose economies depend on tourism. They will be penalised by the proposed APD structure.
The industry has to accept the government is not going to drop the tax – even though many believe it should, after it “promoted” it as a green levy then refused to guarantee the money raised would be used to help the environment.
But the system can be improved.
So our Fair Fares campaign aims to pressure the government to redress its poorly conceived APD plan before people whose livelihoods depend on tourism start to suffer the impact of fewer visitors.
Standing up for developing countries, which the UK travel industry has helped to prosper, is exactly why we launched our Travel Gives Back campaign last year.
It’s essential that we do everything possible to support and sustain such destinations – not put in them in peril by allowing barriers to entry to be imposed.
That’s why we urge you to sign the petition we have set up on the No 10 Downing Street website and send the letter from our website, ttglive.com, to your local MP.
The Treasury appears willing to listen to the industry, so there is a real chance of effecting change. But we have only a matter of weeks before officials finalise the rules.
So time is short. Please lobby your MP using our downloadable letter.