Protectionist UK departure tax hike hits today

The Australian Tourism Export Council (ATEC) has condemned a tax hike being imposed by the UK Government from today, which will add between US$100 and US$200 to the price of a long-haul air ticket fro

The Australian Tourism Export Council (ATEC) has condemned a tax hike being imposed by the UK Government from today, which will add between US$100 and US$200 to the price of a long-haul air ticket from London.

Despite condemnation from governments and tourism-industry bodies around the world, the Brown Labour Government today went ahead with a plan to change the controversial Air Passenger Duty (APD) to a distance-based charge based on a flightโ€™s “carbon footprint.”

ATEC managing director Matt Hingerty said the new departure tax arrangements, which will add at least US$170 to an economy ticket and nearly US$350 to the price of a business-class ticket by November 2010, were a retrograde development for the local inbound tourism industry, which is currently struggling from the effects of the Global Financial Crisis (GFC).

โ€œThis APD is a total reversal of the free-trade rhetoric recently promoted by the G20 group of nations as a measure to alleviate the current GFC,โ€ Mr. Hingerty said.

โ€œWe believe that the climate change debate is being used to disguise this protectionist departure tax in โ€˜greenwashโ€™.โ€

โ€œAustralia is one of the countries which is hardest-hit by this new tax,โ€ Mr. Hingerty said. โ€œOur local tourism industry, which employs nearly 500,000 people, can ill-afford additional taxes of this nature at this time. ATEC believes that this new charge will significantly impact travel to Australia from the United Kingdom and is a critical trade barrier between the UK and Australia, New Zealand, and the Pacific.โ€

โ€œDespite all the recent triumphalism we have heard about some Australian sectors such as mining and finance starting to hit their straps again, trade-exposed industries such as tourism are still doing it extremely tough,โ€ Mr. Hingerty said.

Mr. Hingerty also urged the Australian Commonwealth Government to maintain its opposition to the APD and continue to pressure the UK Government to reverse its protectionist behavior.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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