WTM 2010: Caribbean Finds Proof that APD Hits Economies Hard

Caribbean countries have completed a report into the impact of UK air passenger duty on their economies, and have demonstrated it is hitting the industry, a WTM conference was told today. Hugh Riley, secretary general of the Caribbean Tourism Organization, said the countries had shown that visitors from the UK had fallen at the same time as arrivals from other source markets had risen.

Speaking during a debate on the 2010 Industry Report, he said that demonstrated that the APD increases last year and in this month, were having a negative impact on the Caribbean’s key industry.

“We recognize that there is a global economic problem, but this tells us that APD is hurting us,” he said. Riley said the CTO had completed research into the impact of APD and had been assured it would be considered by the UK government.

Riley was speaking after findings in the Industry Report showed tax was seen as one of the biggest issues facing the industry over the next five years by 40 percent of senior executives polled for the report. It was seen as the biggest single issue by 10 percent.

WTM chairman Fiona Jeffery told the conference APD had increased by 400 percent since it was first introduced in 1994, and it was now at “shocking” levels. “The industry needs to fight back,” she said.