Taxation and travel have never been comfortable bedfellows but there’s real industry agitation over the latest plans to further bleed the industry.

And if you are planning an escape to the sun by taking a fly-cruise in the Caribbean this winter, for example, then you will face the direct impact of the government’s planned departure tax hike.

The UK travel industry is fighting a rearguard action this summer against plans by the government to raise the level of a tax called Air Passenger Duty.

APD, as it is known, is slated to rise not just once – in November – but also again at the same time in 2010.

The rises in this latest stealth tax will hit travellers hardest the further they fly.

That means that passengers flying to connect with cruise ships in the Caribbean – the most popular winter sun sailing destination for Britons – will face higher costs.

And it is this that has angered industry bodies such as ABTA and the UK cruise industry organisation, the Passenger Shipping Association.

They – and others in the wider travel trade, believe hikes in APD are unfair and unjustified and claim there is no evidence that the millions of pounds collected from passengers is going towards helping tackle climate change.

The UK is the only government in the world to tax air passengers in this way and these rises will hit families particularly hard as they struggle with the impact of the recession, ABTA argues.

The four different APD distance bands planned means that passengers flying to Australia will have to pay nearly 38% more and 112% more in 2010/11, according to ABTA [see table below].

The association warns that the increase will put off travellers to destinations such as the Caribbean and Kenya, whose economies are extremely dependent upon tourism, particularly from the UK.

ABTA is calling on travellers to write to their MPs and sign up to an online petition calling on the government to stop increasing the holiday tax burden on families. (Click here for the petition )

APD is due to go up on November 1 so that a family of four flying to Florida will pay £180 in tax and £240 next year when APD is set to rise again.

The Dominican Republic and other Caribbean destinations will see a family of four having their bill rise to £200 from November and £300 a year later.

Those families flying to Australia and New Zealand will pay £220 this year and £300 in 2010.

The tax increases will all double for those opting for more legroom and comfort by flying in premium economy class.

Virgin Holidays has slammed the proposed raising of APD as a “betrayal of trust” for Caribbean communities that have welcomed UK holidaymakers.

The operator, urging a review of the decision, warns that the most obvious impact of the ruling will be on flights to the Caribbean, a region whose islands are extremely dependent on tourism and the UK travel market specifically.

My feeling is that, sadly, this November’s hike in APD is set in stone, a view privately shared by industry leaders.

However, with a general election due in 2010, there’s every chance that a likely change in government will bring a review of the whole process of collecting APD, so the lobbying will continue.

Don’t forget to pledge your support by completing an online petition calling on the government to stop the tax hikes at: http://petitions.number10.gov.uk/APDIncrease

Air Passenger Duty increases from November 1, 2009 and November 1, 2010:

Four geographical bands will come into effect based on the distance from London to the capital city of the country concerned:

Phil Davies

Related posts:

• World Travel Market – Cruise Finally Gains A Platform Don’t be surprised if you encounter groups of Indian...

Posted in Industry