Caribbean Proposes Two-Band System for APD at WTM 2010

Caribbean Proposes Two-Band System for APD at WTM 2010
by Chris Gray

The Caribbean Tourism Organization has proposed reforming air passenger duty by charging one rate for flights within Europe and another for long-haul journeys. The proposal was submitted to the Treasury, along with a detailed assessment of the impact of APD in Caribbean countries by the CTO chairman Ricky Skeritt, who is tourism minister for St Kitts Nevis.

It would mean all European passengers paying a higher rather than they do now, but a flat rate for long-haul flights that the CTO said would end discrimination against countries that relied on long-haul tourists to develop their economies.

The proposal and assessment of economic impact of APD was drawn up after six Caribbean tourist ministers met UK government ministers in September.

Skeritt said the dossier showed the UK market was the only source market to show a decline in visitors to the region in the first quarter of 2010, suggesting the decline was directly linked to APD.

The CTO argues that people flying short distances are being taxed less than long haul passengers because travel to short-haul countries represents 45.5 percent of emissions but only 36 percent of the tax take.

In comparison, travel to countries in the second distance band of APD as it stands represent 25.7 percent of emissions but 33 percent of the tax take.