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Government Must Scrap £10 Tourist Tax as Traffic Falls by 4.5M

16-Jun-2009
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Government Must Scrap £10 Tourist Tax as Traffic Falls by 4.5M

Tags :UK, Ryanair

Ryanair, Europe’s largest low fares airline, called on the British Government to scrap its GMP10 tourist tax to prevent a further collapse in UK tourism and related jobs next winter. In the first five months of 2009 over 4.5 million fewer passengers travelled through the UK’s largest (BAA) airports, resulting in the loss of at least 4,500 airport jobs and over GMP1 billion in tourism revenues.

 

Statistics from Airport Council International (ACI) confirm that every 1 million passengers at an airport create and sustain 1,000 jobs. Similarly Visit Britain statistics estimate that oversees visitors each spend an average of GMP500 visiting Britain. If the traffic collapse of the first five months continues for the full year the UK economy will lose over 10 million passengers, over 10,000 airport jobs and over GMP2.5billion in tourism spend in 2009 alone, with the Government losing at least GMP350 million in VAT receipts.

The Belgian, Dutch, Greek and Spanish Governments have recently scrapped similar tourist taxes and/or airport charges in order to reverse falling passenger numbers and prevent further tourism and job losses. The UK Government must now follow this lead and scrap their £10 travel tax.

Ryanair’s Stephen McNamara explained “This GMP10 tourist tax is nothing short of tourism suicide as the UK government will lose over 10,000 jobs and more than GMP2.5 billion in tourism spend this year alone. The government must follow the example of their Belgian, Dutch, Greek and Spanish counterparts by immediately scrapping their stupid and regressive tourist tax in an effort to avoid any further devastation to tourism and jobs.

Tourism is one of the UK’s most important industries and employers. It responds quickly to price increases. The government’s GMP10 tourist tax is making UK an uncompetitive destination and they must act now to save vital tourism”.


(c) Centre for Asia Pacific Aviation. Date posted: 16-Jun-09

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