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Mr Joe Borg Olivier, Chairman of United Federation of Travel Agents’ Associations (UFTAA), analyzes in TravelDailyNews the position of UFTAA regarding the solidarity tax which has been imposed by the French government to support poor countries.
TravelDailyNews:Which governments had taken the decision to implement the solidarity tax?
Joe Borg Olivier: The French Government took the initiative to introduce this solidarity tax and a few countries followed this lead: Brazil, Chile, Congo, Ivory Coast, Jordan, Luxembourg, Madagascar, Mauritius, Nicaragua and Norway.
TDN:What is UFTAA’s position to this decision?
J.B.O.: UFTAA fully opposes this tax and feels aggrieved by the decision to target just one particular area of one sector of the economy namely “air travel”. It is very unfortunate for air travellers, who are now obligated to support poor countries through this unfair and unjust tax, to be singled out from surface or sea travellers, when, in many cases other means of transport is restrictive. Today’s travel agent is a Tax Collector who is responsible, but not remunerated, for the work he is doing. Airline tickets carry a number of government taxes, air port charges, fuel surcharges and other taxes levelled at the air traveller, and, in some cases these are higher than the price of the basic airfare. The industry of Travel and Tourism has been an easy target for governments to impose taxes and think of it as a milking cow that can be milked indefinitely. Travel agents are then passed on this burden!
TDN:How can this tax to have a negative effect to aviation industry according to your opinion?
J.B.O.: Because of the ever increasing cost of fuel and other taxes levied on airfares, a number of travellers will – whenever possible – decide to use other means of transportation: trains, coaches, ferry – which are not penalized by a “solidarity tax”. One wonders why the other categories of travellers do not have to show solidarity ?Adding insult to injury this newly proposed Solidarity Tax adds more load on the travelling public and may even restrict freedom of movement. One has to think of islanders (where the only means of travelling is by air), remote towns and villages, health travel, work-related travel and other necessary reasons to travel by air on restricted budgets. Families, on low budget, are the first to suffer. With the introduction of this tax, many countries whose economy is based on tourism may suffer a decline in their arrival figures
TDN:How do you comment ICC’s position to suggest new economic opportunities instead of new taxes?
J.B.O.: UFTAA is strong in its position and is happy to see others like ICC sharing similar views. It is a proven fact that open markets and economic liberalization perform better than any other formula. Excessive regulations and trade barriers are definitely not conducive to growth and development. Investment, like a shy bird, flies in where stability is secure. This is the key to long-term development that enriches a nation and creates wealth among its inhabitants. Poverty is minimized and may even be eradicated.
TDN:What actions are you planning in order to persuade other governments not to implement this tax?
J.B.O.: UFTAA has already expressed its views on the “solidarity tax” through the media. We will urge all Member National Associations to contact their respective governments urging them not to impose such tax on an already tax-burdened traveller
TDN:In what way do you support efforts to minimize and eradicate poverty?
J.B.O.: Nowadays many governments already help developing countries with the aim of reducing or eradicating poverty. Such funds are normally taken from the general tax coffers i.e. Official Development Assistance. Some fear that with the introduction of this tax, governments who already help may opt to assist only through the new proposed tax. Minimizing poverty should be every government’s goal; eradicating poverty is rather an ambitious task and one wonders whether this can be attained. It would be very presumptuous of the Travel and Tourism Trade to pretend to solve this problem on its own. UFTAA, like the entire travel and tourism industry, strongly believes in education as a way to combat poverty. As the saying goes – It is better to give a fishing rod to the individual and teach him how to use his skills to fish rather than feeding him every day.
Special Statement from Joe Borg Olivier: Let me state from the outset that UFTAA supports every move and effort made by any government, groups or individuals to help the poor and to minimize as much as possible poverty.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
