Cheapflights Blames APD for Caribbean Search Slump

Cheapflights Blames APD for Caribbean Search Slump

The increased rate of Air Passenger Duty is being blamed for a 51% slump in searches by UK travelers for flights to the Caribbean. Data collated by price comparison company Cheapflights found a drop in consumers searching for flights to Barbados, Jamaica and Mexico together with other long-haul destinations.

It also found a 34% decline in searches for flights to the UK from North America, impacting on inbound tourism. Cheapflights analyzed search patterns for Barbados, Jamaica and Mexico and other long-haul destinations for the first six months of 2009, 2010 and 2011.

APD was altered in 2009 to four higher, mileage-band based tax zones for economy seats and an even higher four-band tax for premium class passengers including premium economy. The tax was raised again in November 2010 and now costs a family of four travelling in economy to the Caribbean £300.

Head of Cheapflights corporate communications John Barrington-Carver said: “Clearly, with a respective 51.3% and 25% drop in traffic since the higher rate four band APD was brought in, Barbados and Jamaica have good reason to expect the UK government to remove the current anomalies in APD.
 
The UK government has just completed a consultation on APD that saw Caribbean governments, the Caribbean Tourist Organization and UK aviation and travel companies highlight the negative effects the high level of taxation is having.