UK APD to rise on schedule

Airlines, travel agents and the British travelling public who were expecting a last minute reprieve on a controversial air travel tax increase have been left disappointed.

Caribbean destinations were also hoping that the latest planned hike on the UK’s Air Passenger Duty (APD) might have been reduced or abandoned altogether.

But the UK government confirmed on Wednesday that the tax on outbound flights from the UK, will rise by 8 percent– twice the rate of inflation – on 1 April 2012.

Papers released by the Treasury in London on Wednesday confirmed this, also signaling that the tax will again be increased in 2013.

The tax hike is being described as one that will further secure Britain as the country with the highest aviation taxes in the world.

The Caribbean Tourism Organisation (CTO) and tourist destinations in the region are on record making it clear that the APD is hurting their tourism industries, with less travelers from the UK coming to the Caribbean.

The tax was first introduced in 1994; passengers had to pay £5 for departures from the UK to Europe and £10 for anywhere else.

However since then APD has soared by as much as 360 per cent, with long-haul destinations seeing the highest increases in taxation.

Caribbean countries have blasted the tax as being discriminatory and harmful to their tourism prospects.

Britain expects revenues from the aviation tax to increase from £1.2 billion to £3.9 billion over the next five years.

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9 Comments

  1. commentator
    March 25, 2012

    The airlines will absorb the costs since it is in their interest to stay in business.
    Virgin and BA are the ones cashing in on the brisk business we give them flying to the caribbean. However there are ways around this tax. Fly via AirFrance from CDG after a short trip on the train. Ferry from Guadeloupe ? or better still fly KLM. Alternatively re route via USA?

  2. Nathaniel Peltier
    March 24, 2012

    T winston I do not think it will be all that bad on the English side. If they stop travelling they will spend more money at home in there holidasy destinations so the Government is laughing either way.

  3. powder puff
    March 23, 2012

    These countries doe have balls, they just doe like how the Carribean handelling their affairs without asking them succkers advice, they think they must call shots for us.
    But we will have to look to the East for help if the west want to start their mess.
    Doe dig the carribean will survive.

  4. Satelite
    March 23, 2012

    I agree with you T.Winston. And the only way for a person to avoid paying such an increase will be by open refusal to travel to the UK. (this might be difficult though).

    The new UK budget was in some ways based on this APD, but they are wrong, cause this is something they cannot control. If people don’t fly, then they will not realise the amount of monies predicted.

  5. Correction
    March 23, 2012

    Now our gov’ts need to remove all these airport taxes on LIAT to allow and encourage regional tourism, it is ridiculous for a ticket to st lucia to cost EC$741.44, a 40 minutes direct flight, i mean come on..

    If you think i lie look it up on http://www.liat.com and book a flight, click on the taxes breakdown and tell me if that is not ridiculous!!!!

    All our leaders seems to care about is ‘White Tourists” this is the inferiority complex that is killing us!!!!

    The APD is designed to keep money within the EU region so the further away you travel from the EU the more expensive the Ticket why can’t we do the same??

  6. T. Winston
    March 23, 2012

    It cannot increase if people stop flying
    In the end all this will do is not only hurt Caribbean Tourism but also Airlines which will result in lost jobs, wages, home foreclosures and chapter 11s. The Caribbean will survive, as will Britain however Britain will see another recession as a result.

    • CIA on the watch
      March 23, 2012

      My friend its all a move by the European Union to pressure small Island states to accept their long outstanding proposals to pass leglislation giving recognition to the likes of what went on just two days ago on the cruise ship, we need to look beyond the horizon, its all about human rights and recognition for gays and lesbians, the caribbean is not responding to their proposals so thay are coming around at a different angle, we need to ask ourselves why is it taking so long to draw down on funds from the EU when right there in Barbados there is an EU office, its pressure from all angles for us to submit to their wishes

    • Farmer's son
      March 23, 2012

      Any tax which adds to the cost of travelling is unwelcome news to countries and regions that depend on tourism. But the tax in itself will not stop people Britons from traveling. The most likely result is that Brits will make fewer trips overseas. It is this reduction in overseas travel by Brits that is a major concern for the tourist industry in the Caribbean.

      We protested the tax but our protests could not outweigh the British governments need for more revenue, period. Our concerns were supported by the British travel industry, including airlines. At this point we need to stop crying over the tax and move on. We may wish to focus our efforts and energies at attracting tourists from other countries to fill the rooms that would normally be taken by visitors from Britain.

    • Just Another Guy On The Street
      March 25, 2012

      I agree that it can be negative to the UK’s expectations, if as you mention that less persons travel. But if what am reading here is the case, am think it might just result in persons cutting the Caribbean from their travel and doing more travel within Europe itself, thus funds within the European family (Countries) and seriously hurting the Caribbean. Just my take on this.

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