shackles on a booming industry. IAN TAYLOR reports from Aviemore
Scottish minister says cutting APD ‘will be gradual’
Ian Taylor
ian.taylor@travelweekly.co.uk
The Scottish government has said it will “take time” to fulfil its pledge to cut Air Passenger Duty (APD) by 50%.
Scottish tourism minister
Fergus Ewing repeated the Edinburgh government’s promise to reduce APD by half when he addressed the UKinbound conference in Aviemore. However, he described the pledge as “nuanced” and said the reduction was likely to be gradual if the Scottish National Party (SNP) wins the next election in Scotland and has tax powers devolved from Westminster. Ewing told the conference: “We made a clear commitment to cut APD by half. The next Scottish government, if we are re-elected
in a few weeks, will reduce APD by 50% starting in 2018 and finishing by 2021.” He added: “If we do it, I very much hope the UK government will think this is the right policy.” But asked whether falling
revenue from North Sea oil made cutting APD more difficult, Ewing said: “It will take time, given the budget circumstances are challenging. The worst thing to do would be to over-promise and under-deliver. That is why we made a nuanced pledge.” Ewing argued a reduction in
APD would lead airlines to launch new flights to Scotland, saying: “Willie Walsh and Michael O’Leary have already said they would do that.” He suggested it could also trigger change across the UK, saying: “If we do it, it may be the UK government will be forced to act.” Ewing added that the pledge sent a clear signal to the tourism sector, telling the conference: “We want to make it easier and less expensive to come here. I hope to be the minister of tourism when we start cutting the tax.”
Sector ‘has learnt to be more assertive’
Travel and tourism has improved its relations with government and achieved a new level of recognition, the head of the Tourism Alliance believes. Bernard Donoghue, chairman of the lobbying
group and chief executive of the Association of Leading Visitor Attractions (ALVA), said: “At the 2010 general election not one political party mentioned tourism in their election manifesto despite the fact we are the fifth-biggest employer and create one in three jobs. “In 2015, every single party mentioned tourism in their election manifesto and most had detailed sections on it. The lesson is we need to be assertive about our success.” Donoghue insisted: “This is
significant. In the first 100 days [of his government] David Cameron launched a tourism strategy. We’re seeing a much greater appreciation of tourism.” He told the UKinbound conference that after the
2010 election he concluded: “Either the politicians are daft or we’re not sufficiently assertive.” Donoghue said the Tourism Alliance “emerged out of the crisis of 2001” when foot-and-mouth disease ravaged domestic and inbound tourism and the September 11 attack hit global travel, arguing: “We found the government was more keen to listen to the agriculture and farmers’ lobby than to tourism.” The Tourism Alliance includes Abta among its members.
“If we are re-elected in a few weeks, we will reduce APD by 50% starting in 2018 and finishing by 2021”
EWING: ‘It will take time, given the challenging circumstances’
Fox backs Bristol airport in opposing Wales devolution
A former member of the cabinet joined Bristol airport in demanding a halt to devolution of Air Passenger Duty (APD) to Wales as Bristol released figures demonstrating the impact this could have on southwest England. The airport launched a campaign for ‘A Fair Flight for the South West’, with a report suggesting the move would cost the region £843 million over 10 years and 1,500 jobs. The figures are based on a UK Treasury study in 2012 which estimated devolving APD would produce a 25% drop in passengers at Bristol. The chancellor is expected to announce devolution of APD in Scotland and Wales next month. Liam Fox, North Somerset MP
and former defence secretary, said: “I call on the government to halt this measure.” Bristol airport chief executive
Robert Sinclair said: “If this tax is devolved to Wales, we’ll be put at a significant disadvantage to Cardiff airport, which is owned by the Welsh government.” He told Travel Weekly: “We
want the government to rule out devolution of APD. England and Wales form a single aviation market. The Scottish situation is quite different: 80% of passengers in Wales travel through airports in England; in Scotland, 98% fly from Scottish airports.”
SINCLAIR: ‘Bristol airport would be put at a significant disadvantage’
18 February 2016
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