The government is planning to increase the rates of APD in line with the RPI (retail prices index) rate of inflation from the 2024-25 financial year.
Mark Tanzer, Abta’s chief executive, said: “While the delayed increase does provide a window for businesses to continue to build on their recovery, it will add extra cost to business trips and holidays in future.”
Meanwhile Joss Croft, chief executive of UKinbound, added the decision to raise APD rates would be a “hammer blow to the recovery of inbound tourism”, as it increased the UK’s “competitive disadvantage” with other destinations.