Expatriate Insurance News: Tax rise 'will damage UK tourism'
01/07/10 19:21
Expatriates born in Britain but living abroad may be put off visiting the UK because of the impending increase on air passenger duty, according to trade association UKinbound.
Marketing and communications manager Ian Dulson said that the country's tourism industry could suffer as a result of the higher rate of tax.
"The main thing that's really hurting us, especially in terms of people coming here or travelling further abroad, is passenger duty," he said. "In effect, it's like a tourism tax."
Mr Dulson added that British travellers flying to Europe, or vice versa, would have to pay around £11 or £12 in tax, but passengers flying from France to Germany would not have to pay the higher rate of duty.
His comments follow an announcement from budget airline Ryanair stating that it will cut its flights in and out of the UK by 16 per cent this winter.
This was a response to the duty increase, which the airline blamed for damaging British tourism and the jobs market.
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