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The Pacific Asia Travel Association has warned that smaller Asia Pacific countries will suffer from a drop in UK visitors due to increased APD. Ian Hawkes, executive director of the UK Chapter, said the new four-tier tax was shortsighted.
“Today’s travellers are being forced to pay for increased security as well as a whole raft of administrative costs. At a time when our industry – one that already contributes substantially to the economy – is facing some of its biggest challenges for decades, this decision by the UK government is shortsighted and self-defeating. Asia Pacific is a vibrant region and one that has overcome several economic and environmental obstacles in recent years. This is bad news for UK travellers and operators for whom the region is a favourite, and it will be especially disappointing for the smaller countries of Asia Pacific who have done so much to make tourism a cornerstone of their economy.”
UK hubs will be hit by changes in Air Passenger Duty as long-haul passengers fly via European alternatives. Titus Johnson, Air Berlin general manager UK and Ireland, said: "Under the chancellor’s new ADP regime, families choosing to fly long-haul will really feel the pinch on direct UK departures. As a result, connections via European points will be much more attractive – for example, a family of four will be able to save up to £292 from November 2010.”
Regional airports will be worst hit by Government plans for a four-tier Air Passenger Duty, according to Ryanair. Describing the move as regressive, it said the increase in APD for short-haul traffic from £10 to £11 in 2009 and £12 in 2010 would be particularly devastating for regional airports where passengers and visitors demand low fares and are most price sensitive.
Ryanair said it would now enter into discussions with regional airports about the future viability of passenger traffic and growth in light of this increased cost. It highlighted that its average fare during the winter at regional airports is just £10, with Ryanair absorbing the current £10 tax. However, Ryanair warned that it would be unable to continue to absorb taxes which continue to increase the cost of air travel.
Ryanair’s Michael Cawley said: “Our greatest concern is the devastation this regressive tax will have on our regional bases, which we have grown due to Ryanair’s commitment to lowering fares. The Government is insane if it thinks these price-sensitive passengers will continue to travel if faced with increased costs.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
