RISING rates of air passenger duty will damage the UK’s attractiveness as a tourist destination, the Government has been warned.
Duty on flights was controversially raised last November with the tax on some flights growing by more than 50%.
The Journal has campaigned against the tax as a serious threat to regional airports.
Labour’s Lord Borrie said at question time in the House of Lords yesterday: “So many other countries on the continent of Europe do not have any duty at all and in other cases much lower than Britain, therefore the competitiveness of our airlines and our airports and our tourist industry is at a disadvantage.
“Tourists are wanted from countries like India and China, growing economies, and we are turning them away, literally, by this unduly high duty.” He said Chancellor George Osborne forecast last June the amount raised by air passenger duty would grow from £1.9 billion to £3.8 billion in 2015-16.
And Tory Lord Rotherwick said: “By uprating the airport duty in the way that it is, the Government will damage its objective of making this country one of the major tourist destinations.
“If a family of four from China travels to this country from their home, they will now be paying £300 even though they are travelling economy.”
But Treasury minister Lord Sassoon said the duty increase that came in on November 1 had been announced by the previous Government.
He said the Office for Budget Responsibility’s November forecast estimated that air passenger duty would be £3.6bn in 2015-16, based on that month’s rises, growing passenger numbers and the duty increasing in line with inflation.
“At the Budget the Government committed to exploring changes to aviation tax and to consult on any major changes. We are considering evidence from stakeholders including on the impact on UK competitiveness,” Lord Sassoon said.
“It is certainly not the intention of the Government to damage the competitiveness of any section of the economy, least of all the tourist sector.”
He added: “I think it is important to see the APD in the wider context. For instance we do not levy the APD on transit and transfer passengers.
“Other countries are introducing similar taxes – Germany introduced a similar tax from January 1.”