e-tid - ETOA wades into APD debate

ETOA wades into APD debate

09 Jul 2009
The Government is being warned London could lose its place as a main gateway to Europe if plans to increase Air Passenger Duty (APD) go ahead.
 
The warning comes from the European Tour Operators Association, which claims the abolition this month of departure taxes by both the Dutch and Belgian governments will make Amsterdam and Brussels more attractive to tour organisers.

ETOA’s executive director, Tom Jenkins, said: ‘London is losing its gateway status.

‘Scheduled tours used to start and finish in London. Now more and more start and finish on the continent. It used to be the automatic entry point and it is now becoming a bolt-on extra. London is seen as optional rather than central.’

Jenkins added that the UK’s high visa fees exacerbated the problem. But he said APD was the main issue.

‘This blanket charge punishes people for choosing to come here. Whatever this does for the treasury; it is a stinging tax on exports,’ he added.

His comments have been echoed by UKinbound chief executive, Mary Rance, who said: ‘Inbound tourism has the potential to help bring the UK out of recession.

‘Overseas visitors spent £16.4bn here in 2008 and with the current exchange rates and the potential to attract even more tourists, that figure could be higher in 2009.’

It is estimated APD will raise £2.46bn for the Treasury, but this does not take into account a potential drop in demand for air travel as a result of the increased cost, as well as the economic downturn.

See also:
APD fury of Caribbean specialists (02/07/2009)
BAR UK joins anti-APD chorus (29/06/2009)
APD hike threatens jobs and economy (25/06/2009)
APD reform ‘will not happen’ (12/05/2009)
Operators warn APD will hurt Caribbean tourism (23/04/2009)
Action urged on APD (27/03/2009)