Destinations in the Caribbean and Asia hare being hit hard by a slump in British holidaymakers due to the latest rise in Air Passenger Duty, a new study shows.
A survey of over 30,000 holidays carried out by The Co-operative Travel has seen a 17% year-on-year drop in holidays to destinations that are between 4,000 and 6,000 miles from London.
Hit particularly hard are sales to the Caribbean, down 20%, and India, down 34% following last November’s hike in APD, the agency said.
The Co-operative Travel managing director Mike Greenacre said: ”This is a very worrying trend that impacts not only on holidaymakers but the many people employed in the travel industry that sell Caribbean and Asian holidays – both in the UK and abroad.
“Transport minister Theresa Villiers confirmed last week that the government is examining the impact of taxation on aviation with a view to an announcement in March; let’s hope that the conclusions will have a positive impact on the tourism industry.”
Travel industry analyst GfK Ascent has reported long-haul sales for summer 2011 down 9% on this time last year despite a 4% rise in total holiday sales.
APD has been widely criticised due to its use of banding and the decision to base these bands on the distance from London to the destination country’s capital city.
This means that the tax on flying to Hawaii is considerably less than it is to Barbados, even though Hawaii is 3,000 miles further from London.