The World Travel and Tourism Council has joined Iata in attacking US plans to extend its aviation passenger security fee.
Describing the measure as a “$25 billion raid on airline passengers”, the WTTC said the move was “confused and counter-productive”. It called on the US administration to think again about taxing an industry that is a driver of the country’s economic recovery.
Washington is proposing to raise $25 billion over 10 years through changes to the APS fee, currently levied at between $2.50 and $5. Under the proposals, the current range will be replaced with a statutory minimum rate of $5, with annual incremental increases of 50 cents from 2013 to 2017, to reach $7.50 in 2017.
Of the $25 billion additional revenue raised over 10 years, at least $15 billion be used for general taxation purposes, rather than passenger security.
Iata has already condemned the plans and WTTC president and CEO David Scowsill travelled for meetings on Capitol Hill, Washington to voice his concerns.
He said: “We fully support the US administration’s efforts to reduce its debt burden, but do not believe it is good economics to raid $25 billion from an industry that is a driver of growth and recovery at a time when President Obama is keen to create millions of job through the $450 billion American Jobs Act.
“Travel and tourism currently contributes more than $1,300 billion or 9% of total US GDP, generates 9% of its total exports and supports 15 million jobs.
“Taxes on travel and tourism tend to do more harm than good economically – as higher charges discourage high-spending visitors. Indeed, the US administration recognises that each and every visitor contributes $4,000 to the economy.
“WTTC believes that this plan has a laudable objective but it is confused and likely to be counter-productive.
“We urge the Obama administration to send this plan back to the drawing board with instructions to promote an industry which will drive economic recovery and job creation – not damage it.”