Tourism chiefs are lobbying the Government to prevent a doubling of the £10 domestic Air Passenger Duty, amid fears the UKwill cave into European Union pressure to come in line with the rest of Europe.
The Government charges £10 for the outward leg of a journey but the EUsaid it is breaking European law by only charging for a one-way trip. The EUwants the Government to charge for the return leg as well – as happens in some EU countries.
Richard Tobias, chairman of the Fair Passenger Duty For All campaign, has asking the Government to keep the set rate. Speaking during a reception for MPs at the Labour Party conference, he said: “We do not welcome APD. Our key message is the one-way fare is the highest in Europe and we do not want any further increases. We want the Government to challenge the EU.”
He claimed the Government would benefit from an extra £60m if it went along with the EU’s demands. Tobias told secretary of state for culture, media and sport Chris Smith that every increase in APD deters UK visitors.
He added: “Please do not think that raising APD is a soft option for increasing exchequer revenue. Leisure tourism is extremely price sensitive.”
Speaking exclusively to Travel Weekly, Smith said: “I would like to keep it as it is, but it is a matter for the chancellor. We have made representations to the chancellor including the industry’s views.”
Smith did, however, deliver a blow to campaigners who want APD scrapped.
“There is no realistic chance of APD being abandoned as it is a valuable asset to the Government,” he said.
The Treasury receives £400m each year from APD.
Tobias, who is also chief executive of the British Incoming Tour Operators Association, promised to fight on.
“We will be biting his [Smith’s] ankle to fight our corner with the Treasury,” he said.
The reception was attended by many representatives from the industry, including ABTA, the Federation of Tour Operators, the Association of Independent Tour Operators and the British Tourist Authority.