16 Mar 2012
Report: APD does 'more harm than good'
BY Pete Hayman
A new report from the World Travel and Tourism Council (WTTC) has claimed the £2.8bn Air Passenger Duty is currently doing "more harm than good" to the UK economy.
In its study, the organisation said that 91,000 jobs could be created and an additional £4.2bn would be generated in 12 months if the air tax was removed by the government.
A planned APD increase due to come into effect from April will see a family of four paying £52 more for a flight to Malaga, Spain, or an extra £260 if travelling to Florida, US.
The study - carried out by Oxford Economics on behalf of WTTC - also found that APD was having a negative effect on trade with countries in the Caribbean, Africa and Asia.
WTTC president and chief executive officer David Scowsill said: "When the economy needs help, it is economically illogical to continue with a tax that costs the country some 91,000 jobs and as much as £4.2bn.
"Travel and tourism grew by 4.1 per cent in the UK last year, but is forecast to slow to 1.3 per cent in 2012. This slowdown is partly due to the impact of APD, which is dampening demand."
Details: www.wttc.org
Image: egd/shutterstock.com
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