APD increase: its first victim
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THE IMPACT of the Air Passenger Duty increases on the industry became clear this week when Manchester airport revealed it had lost one potential long-haul route and other existing services were under threat because of the tax. The airport lost out on a direct service to Kuala
Lumpur with Malaysian airline AirAsia X as a direct result of the levels of APD, which per- suaded the carrier to fly from Paris Orly instead. Jonathan Bailey, external affairs director at Manchester Airports Group, who revealed the loss of Air Asia X at the Airport Operators Asso- ciation, told TTGthat other routes with Singapore Airlines were also under threat. Singapore increased its Manchester service
from five a week to daily in June this year, but Bailey said the carrier was now looking again at them in the light of the APD increases. Transport Secretary Philip Hammond told the
conference the government was trying to ensure its aviation tax policies would not disadvantage UK aviation against competitor airlines and airports. He promised to be an “advocate” for the
industry in discussions with the Treasury. “We are aware of the arguments that you are putting forward and my colleagues in the Treasury are aware of the arguments that are being put forward,” he said. From November 1, APD rises by as much as
£30 to £85 per person for economy seats and by £60 to £170 for seats in premium cabins.
■AOA conference report, p12
‘BEAT THE TAXMAN’: Thomas Cook has promised to pay customers’ APD on long-haul bookings made over the next few weeks to mark the increase in the tax. Its airline is also removing its premium seat option from all outbound flights from May 2011 but it will remain for inbound long-haul flights. Cook said its “Beat the Taxman” promotion will save £75 per person on holidays. It runs until December 16.
04 29.10.2010 Sophie Griffiths.
CONCERN IS growing over a raft of taxes being brought in by destinations around the world amid fears they will hit the British travel industry and damage tour operators. The warning comes as European travel associations sent appeals to the Maldives government over its plans for a Tourism Goods and Services Tax from January 2011. The tax will see a 3.5% levy on all goods and
services sold to tourists, including accommoda- tion, domestic transportation, diving and sports facilities.
It comes as several other destinations have
unveiled plans for new taxes, just as Air Passenger Duty rises come into force in the UK. Mauritius has introduced a new airport tax, with all passengers having to pay an extra £10 when they leave the island from November 1. Austria is also planning to introduce an “eco- logical” tax of up to ¤40, which mirrors a similar tax to be introduced by Germany of up to ¤45. Venice has revealed plans to charge an
entrance tax for tourists arriving by train, aircraft and cruise ship.
29.10.2010
Destinations deal ‘tourist tax’ blow
Kenya is also preparing to double visa fees back to their 2008 levels of $50, after they were lowered for 2009 and 2010. The moves brought warnings that the taxes could backfire and damage the tourist industry in the destinations as well as the UK. Aito chairman Derek Moore said: “This is not the time to be bringing these taxes in. “This is a short-sighted measure, and this
can’t help the British tourism industry. It’s clearly not going to help promote tourism – these countries won’t see an increase in tourism when they bring in these taxes.”
Nikki White, head of destinations and sustain-
ability at Abta added: “In light of APD, these taxes are not great news.” She said the Maldives tax was an “unfair
penalty for which tour operators would have to foot the costs”. Abta and the European Association of Travel Agents and Tour Operators have already sent let- ters to the Maldives government asking for the tax be delayed to November 2011, so tour oper- ators do not have to republish their brochures, or reinvoice bookings.
DUTY BOUND: Transport Secretary Philip Hammond (centre) met a delegation from across the travel industry last week at Royal Caribbean Cruise Line’s office in Weybridge, Surrey, to hear the concerns of the whole industry. He said this week he understood industry worries about Air Passenger Duty. Industry representatives included Mark Tanzer, John McEwan, Jo Rzymowska and Andy Cooper.
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