APD tipped to be hiked in Budget Ian Taylor


Air Passenger Duty appears set to rise above the rate of inflation in next week’s Budget as the chancellor looks to plug a hole in the government finances. A senior aviation source told


Travel Weekly: “The chancellor will probably increase APD above inflation as the government has a £40 billion black hole to fill.” Deloitte UK chief economist


Ian Stewart said: “It’s not a question of whether taxes will rise, but by how much.” The Daily Mail reported


“Labour plots a tax raid on your holidays” at the weekend, suggesting the chancellor plans “inflation-


busting hikes” in APD. It reported Treasury officials had demanded Department for Transport data on the industry to assess the impact. Chancellor Rachel Reeves is


expected to take a series of tax- raising measures, predominantly aimed at business and those better off – including an increase in employers’ national insurance contributions, a rise in capital gains tax on the sale of assets, reductions in tax relief and an extension of the freeze on income tax thresholds. Abta director of public affairs


Luke Petherbridge confirmed: “It seems likely APD will increase in next week’s Budget.” But he said: “We highlighted that the UK charges among the


Atas reports 8% rise in bookings and 10% rise in revenue


Samantha Mayling Atas Conference, Leeds


The Association of Touring & Adventure Suppliers has welcomed more members and more agents over the past year, with suppliers reporting increased revenue and bookings. Claire Brighton, Atas director,


told the Atas Conference in Leeds: “2024 has seen consistent growth all year.” Delegates heard that bookings


across Atas members were up 8% for the January-August 2024 period year on year, and up 9% for agents, while revenue had grown by 10% for Atas


6 24 OCTOBER 2024


members overall and 9% for agents. The average Atas trade booking


value for travel this year stands at £3,871 – higher than direct bookings (£3,171) – rising to £5,451 for bookings for travel in 2025. The latter figure equates to an average commission payment of £770. The figures are based on


research compiled with customer analyst Radar, which uses data from members to uncover sales trends. The conference was Atas’s biggest


yet, with more than 400 delegates, reflecting the association’s growth. New members to have joined since


last year’s event include Audley Travel, Encounters Travel, Exodus Adventure


Current APD rates


Short-haul flights up to 2,000 miles: O £13 Economy class O £26 Premium


Flights up to 5,500 miles: O £88 Economy class O £194 Premium


Flights beyond 5,500 miles: O £92 Economy class O £202 Premium


Domestic flights: O £7 Economy class O £14 Premium


highest rates of aviation taxes in the world in our Budget submission to the Treasury. It would be a mistake to significantly hike the cost of hard-earned holidays.


“APD is not the only tax on


our sector. There is a layering of taxes and charges on aviation. “This could increase the


cost of flying to the extent that demand is unduly suppressed.” Abta’s latest Holiday Habits


survey – released this month – found almost two-thirds (65%) of respondents thought UK travellers should not pay APD rates higher than elsewhere in Europe. The Office for Budget


Responsibility (OBR) estimates APD will raise £4.5 billion in the 12 months to April 2025, equating to 0.4% of government tax receipts. The OBR notes more than


90% of flights are in a class “liable to the reduced rate”.


Atas director Claire Brighton


Travels, Exoticca, Inside Travel Group, Not In The Guidebooks, Oasis Overland, Quark Expeditions, Seabourn and Travelpack. More associate members have


joined and agent membership has risen by 25%, on top of a 38% increase last year. Atas services in the pipeline


include a revamped website, a new training system powered by sister brand Online Travel Training, and a fresh version of the Atas Touring and Adventure Guide. The association will also be


asking agents to join a new agent advisory group to help shape Atas. Brighton outlined other trends


from booking data, noting how the highest regional growth rates had been seen in the polar regions, followed by Africa, Asia, Europe and Australasia. A decline in the Middle East was “no surprise” but North America had seen a small dip. At a country level, bookings


were up by 65% to Spain, 57% to France and 53% to Peru compared with the same time last year, but Jordan, Egypt and Ecuador were all down because of political unrest. Zina Bencheikh, Atas chair and


Intrepid Travel EMEA managing director, reiterated how touring and


adventure is outpacing other sectors. i Atas Conference, page 10


travelweekly.co.uk


PICTURE: Sarah Lucy Brown


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