Happy Christmas, Mr Brown. As if 2006 hasn’t been tough enough, the Chancellor decides to hit the industry in the pocket with a hike in Air Passenger Duty.
With an incredibly short lead in time – the duty will double from February 1 – and no option to soften the blow by giving the industry more warning, it is the airlines and tour operators who are going to have to take the hit on bookings and tickets that have already been paid for.
Early estimates run in to the tens of millions – whatever the real figure, the industry is being made to pay. But what is it paying for?
The Treasury would have us believe that this is a green tax. But as yet it has not explained how or where this money is going to be spent. One thing is for sure, the Chancellor has a big hole in his finances for the current financial year, and by setting the deadline so early, revenue from APD will pour into Government coffers.
The challenge now is to recoup the money from bookings already made and to explain to customers what they have to pay, when and why. Once again the Government has put the industry on the back foot.
The new year will provide the industry with more challenges, especially on the environment and regulation. Somehow the industry must organise itself so that it has clear messages and a unified voice on these issues, taking the argument to Whitehall and hopefully helping to deliver regulation and shape policy that is fair and equitable.
On a more positive note, there will be festive cheer in the McFadden household this Christmas. Thanks to the intervention of Travel Weekly, sole trader Chris McFadden has had his ABTA bond pulled, which means he won’t be facing financial ruin.
The case draws into question the role of ABTA. Maybe now is the time to split its membership and regulatory roles?
This has been a very exciting year for Travel Weekly and travelweekly.co.uk, and the whole of the TW Group. We have had great feedback from readers and suppliers so far and look forward to forging ahead with new ideas in 2007.
From all of the team at Travel Weekly and across the TW Group, we hope you have a good Christmas. Our next issue will be published on January 5 2007.