Gordon Brown’s Tourism Tax creating havoc

‘Airlines have cancelled more routes out of London than any other city in Europe as a direct result of the British government’s Air Passenger Duty (APD) tax, according to figures released by insurers.’

‘Industry insiders are worried it could add to the 76 routes already cancelled since March last year.’

According to Ryanair’s chief executive, Michael O’Leary, ‘Gordon Brown’s tourism tax will see Britain lose over 10 million passengers, 10,000 airport jobs and more than UK Pounds 2.5 billion in tourism spend in the UK this year alone’.

He further pointed out that Belgium, Holland, Greece and Spain had already scrapped the tax.

Barbados and the Caribbean will suffer perhaps more than any other
destination and region due to the clearly unfair zoning bands which levies a higher tax on London/Barbados flights than London/San Francisco or other cities on the US pacific coast.

It is difficult to fathom why a clearly unpopular Government on the eve of a General Election would want to alienate tens of thousands of voters that will lose their jobs directly and possible hundreds of thousands indirectly.

Initially presented as an environment tax, it quite obviously is a stealth tax with blatantly discriminating distance bands and the fact that the tax will not payable by often older, less fuel efficient freight aircraft and private jets that could largely afford the extra cost.

Adrian Loveridge
26th November 2009

Further Reading…

Britain ‘s Air Passenger Duty tax: A disaster for the Caribbean

Britannia may no longer rule the waves but its imposition of the November 1 Air Passenger Duty (APD) tax has sent shock waves across the Atlantic that will wash up on Caribbean shores with a devastating effect on the Caribbean tourism industry.

In spite of massive lobbying from home and abroad and objections from airlines, tour operators and tourism organizations including the Caribbean Tourism Organization (CTO), the British government went ahead with its plan to impose the allegedly “green” and controversial Airport Passenger Duty (APD) aimed at taxing aviation’s “carbon emissions.”

CTO secretary general Hugh Riley called the air passenger tax ” illogical and one that will damage tourism to the Caribbean.”

Meanwhile, British Airways, which is greatly increasing service to the region this winter, has denounced what it calls “these huge tax hikes,” warning “it was bad news for holiday makers and completely unjustified.”

read the full article at ETN eTurboNews


Filed under Aviation, Barbados, Barbados Tourism

3 responses to “Gordon Brown’s Tourism Tax creating havoc

  1. Rumboy

    This APD will have a negative effect on our South Coast hotels. I fail to understand the reasoning behind it. Perhaps Mr Loveridge can tell us more on it.

  2. An 'escape tax' by any other name..

    It’s another escape tax…the bribe you pay
    to have them let you out of their country!
    Isn’t that nice of them?

    In Grenada, they rip you off USD19 per person.

    In Barbados, it’s a freakin sight worse…
    it’s USD30 –OMG!

    I prefer to think of the UK version
    as a Far-Flung-Destinations Tax.

  3. Bajeabroad

    This is only a problem if you have a weak tourism product that is declining in competitiveness. Jamaica going to sh#t but yet Sandals and Butch still winning international awards every year!!!….they offering what international travellers want!!….tax or no tax they will still attract travellers. Come on Barbados, get off our fat asses and develop the damn tourism product!! e.g. It’s a damn shame that alternative activities like ocean park and grame hall have gone by the wayside! yet we still clueless and talk about tourism being our number one product!!….dont make me stupse!

    Another thing…why is the UK tax bad, yet we Barbados drastically increased our departure TAX across the board, one flat fee!!!…..did we not think that hampers intra-caribbean travel!!!….Obviously what good for the goose aint good for the gander!!!

    Stop thinking small and develop the product….UK passengers tax or no tax still flying in droves to Las Vegas, Orlando and Hawaii…I wonder why!!