Peter Fankhauser, Cook’s group chief executive, called APD “a tax on people’s holidays” and one that had risen by 820% since 1994. APD produces more than £3 billion for the Exchequer, but Fankhauser claimed abolishing it would boost UK GDP by 1.7% and created more than 60,000 jobs by 2020.
“That’s because getting rid of it will improve our international competitiveness, make it cheaper for people go on holiday or for foreign tourists to visit the UK. APD in the UK is more than twice the rate of the next highest air tax in Europe, Germany,” he said.
His comments come however as VisitBritain reports a record August for overseas visits to the UK, with a 2% rise to 3.8 million and with US visitor numbers up 13%.
Fankhauser is backing the Fair Tax on Flying campaign, which aims to reduce the costs for holidaymakers and for visitors to the UK.
“Other countries, even other parts of the UK, have realised the benefits of reducing or abolishing the tax altogether,” he said.
“The Irish Government abolished its version of APD in 2014, which led to an 8% increase in tourism in 2015. According to Dublin airport, the number of Northern Ireland residents travelling through the airport increased by 52% in the first year after the tax was scrapped.”
“In 2009, the Netherlands did likewise following a 12-month failed experiment during which a million passengers used rival airports in neighbouring countries. The Dutch government expected to raise around €300 million a year but the economic cost to the Dutch economy was €1.3 billion.”
