Prime minister David Cameron is being urged to consider cutting Air Passenger Duty on the back of his recent visit to India which was designed to increase trade and tourism between the two countries.
The call for urgent action came from the Fair Tax on Flying industry campaign group following a slump in Indian travellers to the UK from 371,000 in 2010 to 348,000 last year.
And rises in APD threaten to make a trip to the UK unaffordable for some Indian families, according to UKinbound.
A family of four visiting from India have to pay more than £400 in APD, and is seriously impacting the choice of holiday destination.
UKinbound chief executive Mary Rance said: “Visitors from India spend on average £900 per stay in the UK, about 60% more than the average visitor, a considerable contribution to the country’s finances.
“The combination of APD and the cumbersome, expensive visa process are a disincentive for anyone planning to visit the UK and certainly do not help the prime minister to convey the message that Britain welcomes businesses and tourists.”
Depending on the class of travel, Indian tourists can pay up to £800 if they opt for more leg-room on their flight.
Rance added: “As the prime minister considers how he can attract more Indian business to Britain he would be well advised to consider taking urgent action to address the UK’s rising flight taxes.”