A call by the British Chambers of Commerce to scrap a planned rise in Air Passenger Duty next year been backed by Abta.
The business body wants the government to instead devise a “bold and long-term” aviation policy.
An aviation report by the BCC, put together with the support of local chambers of commerce and Abta, draws a clear link between air connectivity and the UK’s economic performance.
The study echoes concerns voiced by Abta and the Fair Tax on Flying industry coalition that aviation taxes are hurting UK businesses.
Abta chief executive Mark Tanzer said: “We urgently need the Government to set a clear strategy on aviation that supports sustainable growth across the whole of the UK and that meets local and environmental needs.
“This report underlines that aviation is a catalyst for the wider economy. Government restrictions on growth and obstacles to new routes and affordable flying not only hurt the holidaymaker, they hurt manufacturers, retailers and businesses right across the economy.”
The importance of new airport capacity in driving economic growth is further highlighted by new research from Abta.
It shows that nearly a third (29%) of consumers spend more than £500 in the UK before going on holiday abroad, on items such as clothing, cosmetics and travel accessories, demonstrating the importance of outbound tourism to the economy.
“As an island nation our regional and international connectivity is vital to our future competitiveness,” said Tanzer.
“Many of our airports are operating at close or near to capacity and this is severely limiting growth potential. Our research shows people who go on holiday support the UK economy and it is false logic to assume that by restricting capacity in airports we are keeping the UK consumer pound here.
“Whether it is the need for more aviation capacity or fairer flight taxes, the Government ignores these issues at its peril. Aviation is a driver of jobs and growth and this report further underlines that if Britain is to grow Government must find a new deal for aviation.”
The Board of Airline Representatives in the UK (BAR UK), which represents 86 airlines, also backed the report and urged the government to action the findings in formulating its aviation policy.
The report highlights the growing lack of UK connectivity, and the need to act sooner rather than later in order to provide the structure for sustainable aviation and economic growth. BAR UK chief executive Mike Carrivick said: “The BCC report illustrates just how vital air transport is for the economic recovery of the UK.
“The business world is being held back by the lack of capacity to serve new and existing destinations by air, and is justifiably concerned that new and emerging markets will be lost to competing economies.”