Air Passenger Duty could threaten thousands of jobs
Doubling Air Passenger Duty (APD) could result in the loss of 12,000 jobs in the British travel and tourism industry, according to a report by accountants Deloitte & Touche.
The study, commissioned by the Council for Travel and Tourism, whose members include the British Hospitality Association, forecasts that doubling duty on flights departing from the UK will mean a loss in revenue from tourists of more than £360m.
On 1 October 1994 APD was introduced at rates of £5 per passenger departing from any UK airport on a domestic or EU flight, and £10 per passenger departing on flights terminating outside the EU. These rates were doubled on 1 November 1997.
Although levied on departing flights, the report states that APD encourages inbound travellers to switch to other destinations. "There is growing evidence that the rising burden of taxation is gradually eroding the ability of the UK industry to compete," says the report.
The report concludes that the combined impact of the doubled APD and the strong pound could cause the UK's international tourism receipts to fall by up to 5% during 1998.
"The Government must now reconsider the increase in APD before severe damage is done to the UK tourism industry - and to the UK economy as a whole," said Barry Goddard, executive director of the Council for Travel & Tourism.
