Heathrow CEO: UK tourist tax hands competitive advantage to EU rivals

Heathrow CEO: UK tourist tax hands competitive advantage to EU rivals
Heathrow CEO, John Holland-Kaye
Written by Harry Johnson

Passenger numbers at Heathrow fell by 88% in November, as travel restrictions and a second lockdown took their toll. Based on current forecasts and continued decline in passengers, the decision has been taken for Terminal 4 to remain non-operational until the end of 2021.

Heathrow is calling for targeted, sector specific Government support to protect jobs and help drive the UK’s economic recovery.  These include full business rates relief for all UK airports and abandoning the disastrous “tourist tax” which will make the UK the only country in Europe not to offer tax-free shopping for international visitors. The move is expected to result in 2,000 retail job losses at Heathrow alone.

Cargo volumes remain significantly below last year, reflecting the impact of COVID-19 on the UK’s international trade. 

Heathrow has partnered with transatlantic carriers British Airways, American Airlines, United Airlines and Virgin Atlantic on a cross-industry study aimed at eradicating the need for quarantine for passengers, by demonstrating the effectiveness of pre-departure testing in reducing transmission while making free movement easier.

Heathrow CEO, John Holland-Kaye said: “2021 should be the year of Britain’s economic recovery. But recent announcements, such as the tourist tax, could be the final nail in the coffin for struggling businesses such restaurants, hotels and theatres that rely on inbound tourists, as well as for retailers. To make Global Britain a reality, the government should be helping the aviation sector to survive, to develop routes to our key trading partners, and attract businesses and tourists to come to Britain to spend their money.”

Traffic Summary November 2020

Terminal Passengers
(000s)
 Nov 2020% ChangeJan to
Nov 2020
% ChangeDec 2019 to
Nov 2020
% Change
Market      
UK               57-86.1          1,377-69.0          1,774-63.1
EU             240-88.5          7,703-69.6          9,857-64.0
Non-EU Europe               68-84.0          1,702-67.4          2,174-61.8
Africa               63-77.8          1,040-67.5          1,351-61.7
North America               82-94.2          3,737-78.4          5,290-71.8
Latin America               20-82.2             389-69.3             506-63.4
Middle East             103-83.1          2,237-68.1          2,980-61.3
Asia / Pacific             114-87.1          2,780-73.6          3,731-67.6
Blanks                –  0.0                 10.0                 10.0
Total             747-88.0         20,967-71.8         27,663-65.7
Air Transport Movements Nov 2020% ChangeJan to
Nov 2020
% ChangeDec 2019 to
Nov 2020
% Change
Market      
UK             690-80.5         14,168-62.0         17,571-56.3
EU          3,190-80.5         78,745-59.2         94,937-54.7
Non-EU Europe             760-78.2         16,137-59.7         19,689-54.9
Africa             596-52.6          6,700-51.7          8,054-47.2
North America          2,346-63.9         32,410-57.7         39,139-53.0
Latin America             246-48.0          2,642-52.0          3,138-48.0
Middle East          1,294-49.4         15,134-45.8         17,795-41.7
Asia / Pacific          2,218-41.5         22,446-48.3         26,369-44.5
Blanks               24             149             149
Total         11,364-70.1       188,531-57.0       226,841-52.4
Cargo
(Metric Tonnes)
 Nov 2020% ChangeJan to
Nov 2020
% ChangeDec 2019 to
Nov 2020
% Change
Market      
UK               13-78.9             491-34.7             592-29.0
EU          8,678-0.6         74,021-24.6         82,397-23.1
Non-EU Europe          6,66318.4         44,798-22.7         49,694-21.1
Africa          7,675-4.8         62,038-29.0         69,387-27.3
North America         37,142-26.9       378,854-30.8       428,871-28.7
Latin America          3,674-18.8         30,704-39.3         34,956-36.8
Middle East         20,602-12.6       201,048-17.7       222,998-16.2
Asia / Pacific         35,190-14.2       301,831-33.6       340,807-31.6
Blanks                –  0.0                –  0.0                –  0.0
Total       119,635-16.0    1,093,783-29.0    1,229,701-27.1

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About the author

Harry Johnson

Harry Johnson has been the assignment editor for eTurboNews for mroe than 20 years. He lives in Honolulu, Hawaii, and is originally from Europe. He enjoys writing and covering the news.

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