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news travel gives back campaign
ttglive.com
TTG’s Fair Fares campaign is backing efforts to get “ludicrous” APD rules changed before this spring’s
budget. Chris Gray and Martin Ferguson report on the campaign and how the Caribbean could suffer
APD hike will lash Caribbean
INDUSTRY leaders are calling on the government
to act fast to stop changes to Air Passenger Duty
C
unfairly hurting developing tourist economies.
O
They warn that the economies of the
STO
VER
R
Caribbean will be badly hit by the changes, which
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calculate the tax according to the distance of
destinations’ capital cities from London.
The changes mean all Caribbean islands will
pay a higher rate than anywhere in the US, even
though most of the US is farther away, with
Hawaii being almost twice as far as Antigua.
A family of four travelling premium economy
to Antigua would pay £600 in APD from November
2010, compared with £480 to Hawaii.
One of the islands hit will be St Kitts,
where politicians fear the planned hike in APD
could undermine the potential of a new direct
British Airways service that started this week.
Ricky Skerritt, St Kitts and Nevis tourism APD changes would make Caribbean flights more expensive and harm regions that rely on tourism, such as Ottley’s Plantation in St Kitts
minister, told TTG: “This is an attack on the
Caribbean and it has the potential to hurt us. before the rules come into force in November. meaning the lowest APD rate would be £45,
“When APD emerged it was about pushing air- Development director Andy Cooper said the compared with £11 for Cyprus in the first band.
lines to become more environmentally friendly. anomalies in the rules would also hit Kenya, Cooper called for the system to be changed to
The Caribbean is one of the most environmentally which will pay a higher rate than the US, even three bands – 0-2,500 miles, 2,500-5,000 miles
friendly places in the world. We have no carbon though Nairobi is nearer London than most of and 5,000 miles and above – and calculated
deficit, no factories and no heavy industry.” America west of Chicago. purely on distance rather than by capital cities.
Abta is lobbying the government to get Egypt would potentially lose out because it just
the system changed in this spring’s Budget falls into the second of four distance bands, ■ Get involved with Travel Gives Back, p38
Leading industry figures back TTG ’s Fair Fares campaign
How YOU can help
AMANDA WILLS, RICHARD TAMS, British Airways
Virgin Holidays managing director head of sales for the UK and Ireland
To: Alistair Darling, Chancellor of Exchequer, 11 Downing Street
“Protecting our Caribbean industry “APD was portrayed as an
From: Lucy Huxley, Editor, Travel Trade Gazette
partners, the communities in the environmental tax, but not a penny
Dear Mr Darling,
region and the customer’s right to a goes to green projects. It is an extra
I am writing to urge you to act on the concerns of the travel
fair price breakdown is paramount. blow to an industry that doesn’t industry about unfair anomalies in the new system of Air
We must lobby to redefine the bands. need any more blows. There are
Passenger Duty.
The present structure means that travellers to the
None of these issues are addressed by as many anomalies in the latest
Caribbean or Kenya will pay more tax than those visiting
the APD ruling, and it’s our responsi- version of APD as there were in
any part of the United States, including Hawaii, which is
nearly twice the distance from London.
bility to do so with this campaign.” the original.”
I believe this will deter travellers from visiting developing
economies that rely on tourism for their livelihoods and
MIKE GREENACRE, The Co-operative DAVID MORTIMER, AAC chairman and
have few alternative sources of employment.
I urge you to change the system to introduce fairer
Travel managing director Golden Caribbean managing director distance bands in the next finance bill so that poor
“It is grossly unfair that you can fly “APD should be scrapped as it is not
countries are not unfairly penalised, and to remove other
anomalies that unfairly tax premium economy passengers
to LA and play less tax than if you fly the environmental tax it was supposed
and force passengers from the UK regions transiting
to Barbados. While the government to be. If they are going to do it, they
through Heathrow to pay twice.
I understand that Abta has raised these concerns with
may raise more money from individ- should make it equitable and put
your Treasury officials and hope you will be able to take
uals, fewer people will travel, so it some justice in there. It is clearly a
speedy action to create a more fair system.
won’t raise any more revenue over- nonsense that you can fly all the way
Lucy Huxley
all. It would cause unemployment to Hawaii and pay less tax than if Editor, Travel Trade Gazette UK & Ireland
in the Caribbean and at home.” you fly to Barbados.”
06 16.01.2009
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