The Caribbean Tourism Organization is poised to release research on the impact of imminent sharp rises in Air Passenger Duty, with a preliminary estimate suggesting a 10% fall in UK visitors to Jamaica alone could cost $30 million.
The CTO is all too aware of the likely consequences, having lost an estimated $100 million in tourism revenue since 2007 following a US decision to require its citizens visiting the Caribbean to have a passport.
However, the CTO believes amending the APD rate on Caribbean-bound flights – to put it on a par with the rate to the US – would help.
CTO acting secretary-general Hugh Riley said: “The UK government has a right to impose a tax. What we are asking for is parity, for the competitive disadvantage to be removed. We would like APD to be done away with, but we would consider re-banding reasonable.
“I am hopeful an amendment could be made – most likely in the form of re-banding. But the issue is how soon and to what degree. We might see the change in 2010.”
That would see APD on an economy fare to the Caribbean rise from £40 to £50 this November, and then to £60 rather than £75 as currently proposed in 2010. However, it would still leave the Caribbean at a disadvantage to the US for a year.
Re-banding might also weaken the industry coalition headed by ABTA that is demanding a re-think on APD as a whole.
Riley said the Caribbean was already suffering due to the downturn. “There is tremendous pressure on price, with deals I have not seen before, and hope not to see again,” he said.