Air Passenger Duty: Don't Let it Affect your Holiday
Air Passenger Duty: Don't Let it Affect your Holiday
by Charles Starmer-Smith (www.telegraph.co.uk)
With cabin-crew strikes, an economic downturn, company failures, a weak pound and a certain ash cloud to deal with, this year has been particularly testing for the travel industry. But Icelandic volcanoes are not the only thing to have been emitting hot air. It isn’t often that an issue unites the disparate sectors of the industry, but opposition to the Government’s continued increases in Air Passenger Duty (APD) is one.
Tour operators, airlines, passengers, tourist boards and environmental groups have long seen through the Government’s “green wash” to recognise these rises for what they are: a shameless way to swell Government coffers in the name of helping the environment — for not a single penny from this tax on travel has been directed towards environmental causes.
On November 1, the Government proceeded with Labour’s planned tax increases on every air passenger leaving the UK. And we’re not talking about a percentage point or two — in less than five years, the tax has increased by up to 325 per cent, leaving a family of four flying to the Caribbean with an APD fee of some £300. Premium-economy passengers have been hit ever harder: a family of four flying to the Caribbean will pay £600 in duty, up from £160 in 2006, and the same as those in first or business class.
APD is also having an effect on destinations. Take the Caribbean, for example, where tourism is a huge part of the economy. On some islands, UK visitor numbers are down by as much as 20 per cent, year-on-year. Due to the bizarre tax banding, which is decided by the distance from London to the destination’s capital city, passengers travelling to Hawaii currently pay less duty than those flying to Barbados.
Holidaymakers’ choice of destination may be significantly influenced by which tax band it falls into. Tunisia (APD fee: £12) might appeal instead of Egypt (£60), Florida (£60) rather than St Lucia (£75) or Kenya (£60) rather than South Africa (£75). Yet those who fly on private jets, the most fuel-inefficient form of air travel, are exempt from paying APD.
It is not all doom and gloom. Economic uncertainty has meant that the traditional package holiday is back in favour; competition on air routes means it is still cheap to fly; passenger figures are improving (September was a record month for Heathrow); and, when surveyed about tightening their belts, Britons continue to put their annual holiday before anything else.
But for how long? The Treasury intends to raise £3.8 billion from air travel in 2014. It is also considering options for further increases, such as a “per plane” tax — this would see traditional carriers, such as BA, that fly less full, penalised more than low-cost airlines which fly nearly full.
The key to influencing the corridors of Whitehall is speaking as one voice. As BA’s Willie Walsh told delegates at last month’s Abta travel convention: “Do not allow the differences in our approach to divide us. As we squabble over the structure, the government just smiles and keeps on increasing the taxes. Enough is enough: we must fight back.”
HOW APD HAS RISEN
From this month APD increased from £11 to £12 on Flights of up to 2,000 miles (Europe, North Africa); from £45 to £60 on flights between 2,001-4,000 miles (North America, Middle-East); from £50 to £75 on 4,001-6,000 miles (Caribbean, southern Africa, Far East) and from £55 to £85 for anything further afield (Australasia, Indonesia, Malaysia, Argentina).
HOW TO AVOID IT
Be prepared to add time to a journey. Travellers who fly via continental European hubs (Edinburgh-Amsterdam-Sydney, for example) rather than direct from, or transiting through, UK airports do not pay the increased APD (£12 instead of £85) as long as they book separate flights.
JOIN THE CAMPAIGN
Last autumn, The Daily Telegraph launched a campaign against Air Passenger Duty. Already, it has garnered 45,000 responses. To register your opposition, see www.telegraph.co.uk/apd
