Carib more optimistic on air tax ahead of UK budget presentation

Caribbean tourism officials got a flicker of hope Monday following media reports that Britain will not be increasing the controversial Air Passenger Duty (APD) when the national budget is delivered today.

Reports in the British national media claim Chancellor George Osborne will not go ahead with a planned increase in November, although this has not yet been confirmed.

The Guardian newspaper said the decision is designed to help holidaymakers, who are seen as embodying the "squeezed middle".

The Barbados-based Caribbean Tourism Organisation (CTO) and regional tourism ministers have been pushing London to reverse plans to raise the APD which, they said, make travel to the Caribbean very expensive.

Last week, the CTO took its concerns to Brussels, lobbying European officials to side with the region against the tax.

Before November last year, each economy-class traveller to the Caribbean paid £50 (US$77) in APD, but that tax was increased to £75 (US$115) - the second in as many years.

The levy for premium economy, business and first-class passengers rose from £100 (US$154) to £150 (US$291).

Review of the situation

The British coalition government, which is dealing with a financial problem, had promised to review the situation after presentations by regional governments.

Nearly 65 corporate travel departments, travel management companies and tour operators have sent a letter to Osborne and to the Secretary of State for Scotland Michael Moore.

"We urge you to reduce this burden on the competitiveness of the UK for meetings, incentive trips, conventions and tourism. Collectively, we facilitate hundreds of millions of pounds of annual travel activities, and the UK is already losing our business to European destinations that have no such duty, or whose duty is a fraction of the UK," the letter noted.

- CMC