The UK’s ambitions to attract inbound tourism ahead of the 2012 Olympics could be seriously undermined by uncompetitive taxes and airport charges, Virgin Atlantic warned.
The airline was responding to the World Economic Forum’s travel and tourism competitiveness report which branded the UK as ‘appalling’.
Though Britain came seventh out of 139 countries – a jump of four from 2009 which lifted the country above Spain – the report said taxes and other airport charges in the UK are some of the most prohibitive in the world.
The UK ranked 134th out of 139 nations in terms of its competitiveness of airport charges and ticket taxes, ahead of only Senegal, Mali, Chad and the Ivory Coast.
Despite the findings of the report stating that tourism contributes almost 10% of UK GDP, 83 other nations spend more reinvesting in the industry, while the UK ranks 63rd on the priority given to the area by government.
This performance reflects a 30 year decline in the UK’s global tourism market share where its share of revenue has almost halved since 1980.
Virgin Atlantic chief commercial officer Julie Southern said: “We have a burning platform here that Government and the tourism and transport industries need to respond to.
“We have a strong tourism product in this country and this report also shows that we do some things well. However we cannot afford to price ourselves out in the run up to the Olympics with this very unpalatable mix of rising visa costs, aviation taxes and higher airport fees.
“Both tourism and aviation have fundamental roles to play in the UK’s economic recovery and for encouraging visitors to these shores ahead of the Olympic and Paralympic Games.
“The two industries can also be key drivers of employment opportunities to skilled and unskilled workers – something that the government needs, to ensure the UK’s future prosperity.”
But she warned that economic growth is being “stifled” by ever increasing levels of Air Passenger Duty.
“A tax which started off at a flat rate £10 for international flights has now soared to as much as £85 on long haul economy tickets,” said Southern. “A family of four coming to the UK from America is now paying £240 in air passenger duty alone.
“We urge the government to consider the very serious indicators in the WEF report when reviewing transport and tourism tax policy in the upcoming budget.”
Virgin Atlantic has joined with other leading names in the UK travel and tourism industry to campaign for A Fair Tax on Flying.