December 14, 2010 10:59 ET

Air Passenger Duty Tax Increase Set to Reduce Travel

LONDON, UNITED KINGDOM--(Marketwire - Dec. 14, 2010) - According to the travel site travelio.net, just under 50% of UK holidaymakers are reducing their 2011 overseas holiday plans due to the recent Air Passenger Duty (APD) increase.

This statistic was part of the findings released by the recent World Travel Market, in which 1,000 people were polled. Participants were asked how the recent increase would affect their holiday plans, with 45% of them saying that they would definitely reduce their flying time due to the increase. A further 8% said they wouldn't be able to fly at all as a result of the increase.

The increase comes just a year after the previous hike, which saw the treasury amass £1.9 billion. The 2009 increase reportedly had a very negative impact on overseas tourism and saw the number of annual UK visitors to some Caribbean islands fall by 25%.

The UK government has put forward a proposal to replace the APD with a potentially more expensive Per Plane Tax (PPT). This revised tax structure will help the government reduce the UK's record debt by raising £3.8 billion in 2015/2016.

More than the current 45% of travellers would reduce their travel plans under this proposed PPT, with 10% of people cancelling their annual trips completely.

However, travellers are not the only ones concerned. More than 40% of the 1,200 senior industry executives polled in the World Travel Market survey said that increased taxation, particularly APD, will have a major negative impact on their business until 2016.

Ensure you have Endsleigh travel insurance cover to protect your pocket against unexpected incidents while travelling. Get value for money when travelling and be protected against flight cancellations, lost or stolen luggage and medical emergencies abroad.          

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