Commenting on the 2011 World Travel Market Travel Trends Report released today, Mark Tanzer ABTA Chief Executive said:
“The WTM Travel Trends Report should be required reading for the UK Government; the report states that 5% of UK holidaymakers have said that rising taxes stopped them flying this year, with a further 8% stating that increasing APD would lead them to stop flying as well. With recent ABTA research showing that nearly one in three British holidaymakers spend in excess of £500 in the UK preparing for their holidays abroad, the economic impact of APD on tourism and the UK economy in general is damaging. And putting-off Brits from flying won’t be the only impact of higher APD – foreign visitors are likely to also stay away.
There is a great deal of support within the industry for the Olympics, with the WTM Report finding that 82% of senior industry executives see them as having a positive impact on London and the UK, but the Government is in danger of wasting much of this golden opportunity for growth through high levels of aviation tax.
Putting up APD even further may also have the perverse effect of lowering the tax take as less people choose to fly in and out of the UK.”