The government’s seemingly limitless appetite for increasing Air
Passenger Duty is continuing to impact the holiday industry, reveals the
World Travel Market 2013 Industry Report.
Seven out of ten senior industry executives attending World Travel
Market, which takes place in London this week, predict that the next
increase in 2014, just one year after the previous increase, will
adversely affect the industry.
A further 65 per cent have predicted that it will deter foreign
tourists from coming to the UK, a little more than a year after London
and the UK hosted the 2012 Olympics, partially in a bid to drive
tourism.
Further analysis of the results show that of the 71 per cent
professionals predicting the tax will have an impact on the UK outbound
tourism market, 19 per cent have predicted fewer holidays will be taken
overall.
Exactly one quarter say fewer long haul holidays will be taken while
27 per cent believe holidaymakers will choose short haul breaks over
long haul trips.
Of the 65 per cent who said the levy will harm the UK’s inbound
tourism trade, 20 per cent said it would lead to significantly fewer
overseas tourists coming to the UK while 45 per cent said slightly fewer
would visit.
And they are right to be concerned.
A poll of 1,001 UK holidaymakers has revealed nearly half – 41 per
cent - will change their holiday plans because of the tax’s next
increase on April 1st 2014.
Of the 41 per cent, 14 per cent have said they will reduce the number
of overseas holidays they will take while 20 per cent pledged to stop
flying long haul in preference of short-haul trips.
A further seven per cent said they will only take domestic breaks because of the increased expense.
Just 28 per cent said the charges would not affect their plans.
Reed Travel Exhibitions Exhibition director World Travel Market Simon
Press said: “Successive UK Governments have continued to increase Air
Passenger Duty since it was introduced in 1994.
£These increases have started to price out many UK holidaymakers from the trips they want to take.
“Furthermore, the increases also affect inbound tourists to London,
meaning it could affect the successful tourism legacy of the 2012 London
Olympics.”
Following the latest increases in APD on April 1st 2013, the current,
cheapest rates for an economy seat stands at £13 for short haul, £67
for mid haul and £83 for long haul while anyone wishing to fly more than
6,000 miles must shell out £94.
The next round of increases on April 1, 2014, will not impact short
haul flights but will see mid haul rise to £69, long haul to £85 and
those in the 6,000 mile plus category paying £97.
When APD was first introduced in 1994 it cost just £5 to fly anywhere in the UK and EU and £10 elsewhere.
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