International Airlines Group chief executive Willie Walsh has accused the government of being too focused on deficit reduction to realise the damaging impact APD is having on the economy.
Walsh demanded the tax be scrapped in a session at The Travel Convention in Palma, Majorca, and said other countries were laughing while grabbing the growth the UK was forgoing.
He claimed the rest of Europe saw 4% growth in tourism customers last year, while the UK suffered a decline of 3.3%, or 7.4 million passengers.
The drop was most marked in Scotland, where passenger numbers declined 7%. In Northern Ireland, where APD is to be reduced, departures fell by 5.6%.
Walsh said the decision to reduce APD in Northern Ireland was the clearest indication of the damaging impact of the tax.
He said transport secretary Philip Hammond was “a very intelligent guy” but accused him of having “no interest in transport policy” and of seeing APD only in relation to deficit reduction.
“We have a guy who has no interest in transport. Talk to him about deficit reduction and he is passionate about it,” Walsh said.
“The government needs to set aside the fixation on revenue and understand the full economic impact of these high and unsustainable taxes.
“The tax should be withdrawn. Over time the government should wean itself off the revenue. It is having a hugely damaging impact and it will continue to have an impact.”
Walsh also slammed the government for the decision to cancel the building of a third runway at Heathrow. “While we have been restricting growth opportunities the rest of the world has been looking for opportunities to develop their economies.”
IAG chief executive Willie Walsh speaks at The Travel Convention, October 2011. Photo by Steve Dunlop.