New £340 tax on your family holiday
FAMILY holidays will be “beyond many people’s reach” after swingeing tax hikes add up to £340 to the cost of getaways, Britons were warned last night.
Hard-up families desperate for breaks will struggle to afford air travel when the punitive additional costs kick in next week, it is feared.
Half of families said the additional costs would put them off travelling abroad at a time when many needed respite from penny-pinching at home. And in a double-blow the levy – which will be applied only by Britain – will hit the number of tourists coming to the UK and could seriously damage the amount of visitors coming here for the 2012 Olympic Games.
From next Monday, a family of four will pay an extra £240 to reach Florida, £300 for the Caribbean and £340 to get to Australia, thanks to the rise in Air Passenger Duty tax. For those looking to travel in luxury, the tax doubles for any class above economy, so four people will pay £680 in fees alone to fly to a long-haul destination.
Virgin boss Sir Richard Branson said: “These latest rises are putting air travel beyond many people as they struggle to juggle their finances in these difficult times. We cannot continue to ratchet up taxes on the paying public and expect no impact on aviation and the UK tourism industry.”
The levy applies to anyone taking a flight from the UK – meaning British travellers and those making return visits to the UK are hit.
Virgin Atlantic’s chief commercial officer Julie Southern said: “Our message to Government is that this absolutely has to be the last time that the travelling public faces APD rises.”
The tax divides flights into four bands, based on distance. But because this is based on the location of the country’s capital, passengers pay the same to fly to Hawaii as they do to reach Cairo.
Sean Tipton of the ABTA travel association said the UK was the only country in the world to levy specific taxes on flights, although Germany is set to introduce one next year.
Virgin Atlantic’s Greg Dawson said the 2012 Olympics would suffer. He said: “We are trying to encourage people to come to the Games, and the only way we will get value from the tourism is by attracting them from emerging markets such as China and India.
“We really need to target these areas to enable the Olympics to be a success, and these are among the people who are going to be most affected by APD rises.”
British Airways chief executive Willie Walsh has also labelled the tax “a disgrace”.
Virgin Atlantic said only 44 per cent of passengers were even aware of it, despite the fact it has already been charged on flights booked for after next Monday. APD was introduced in 1994 and has been repeatedly raised since.
Gordon Brown doubled it in 2007, claiming it would reduce the number of flights and fight global warming. But critics say it goes straight into Treasury coffers.
From Monday, charges on long-haul flights, such as Australia, Indonesia and Singapore, will rise from £55 to £85 for every economy passenger and from £110 to £170 for other classes.
Short-haul economy flights will see an increase of £1, while economy passengers for mid-range destinations such as Egypt will see taxes rise from £45 to £60. America is also included in this band.
Sean Tipton of ABTA said: “This is going to affect families already under pressure form the recession and the cuts coming next year.”
Phil Salcedo of Travelzoo UK warned passengers to check the small print as 30 per cent of travel offers did not include taxes in the advertised price.
The Treasury said last night that the increase would make a positive contribution to the country’s coffers.
A spokeswoman said: “We are continuing with the previous Government’s policies because it will bring in contributions to reduce the budget deficit we inherited.”
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