Rise in airport tax may hit tourism

06 November 2012 09:14

Industry bosses are concerned that the introduction of Airport Passenger Duty could damage tourism in the UK.

Industry bosses are concerned that the introduction of Airport Passenger Duty could damage tourism in the UK.

The introduction of a higher Air Passenger Duty (APD) tax on airport departures next year will be likely to have a negative impact on tourism according to industry chiefs. A survey of 1,300 tourism industry bosses found that more than eight in ten (84 per cent) suggested that tourism in London would be damaged if the increased levy were to be put in place in April 2013, as scheduled.

The survey was conducted by the people behind the World Travel Market, a travel trade exhibition that opens this week. Holidaymakers were also asked whether their plans would be affected by a higher APD and over half said that they would be likely to alter their arrangements. The rise in APD would also hit already stretched budgets, leaving less money for holiday essentials such as travel insurance.

Simon Press, director at WTM, said: "APD has long been a punitive tax on tourism and its increase will make it even more so and ironically will most likely drive down revenues as fewer tourists come to the UK as a result." Some travellers questioned said they would look to swap long distance trips for shorter flights.

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