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Region's tourism ministers agree on common approach to controversial UK travel tax

Contact: Shannon Lebourne

Tuesday 12 October 2010 –  Caribbean Tourism Ministers have agreed on an approach to the UK administration on its controversial tax on airline tickets which is known as the Air Passenger Duty (APD).

According to tourism industry experts, the tax, which has already affected UK visitor arrivals to the Caribbean will deal a blow on the economies of the region and other developing countries.

But Saint Lucia’s Tourism Minister, Honourable Allan Chastanet, says his regional counterparts have all agreed to implement some decisive plans to ensure that the Caribbean’s position is well represented at ongoing negotiations on the controversial travel tax.

Under the classification economy class, UK passengers travelling to Saint Lucia and other Caribbean destinations will be subject to paying an additional 70 to 150  pounds on their plane tickets.

“The next step for us is continuing our bilateral discussions with the UK government. We have always indicated we do not have a difficulty with any government that wants to raise revenue through taxation. The problem arises when taxation is done in a manner where it  prejudices trade, or discriminates against trade in this region—that is our concern.”

“We think the four bands leaves a lot to be desired. I don’t think anyone needs to be a  brain surgeon to realise our concern when the tax is increased to the extent, that a premium economy class tickets will increase the cost by $EC600.”

Minister Chastanet says  Caribbean tourism ministers have decided to  launch a formal complaint with the World Trade Organisation (WTO) against the UK government  because the Airport Passenger Duty (APD) is discriminatory in nature.

“A study was done which confirms to us that this tax does infringe on GATT, because it is  discriminatory. If you look at the example of Turkey and Egypt, the APD on Turkey will be between 12to 24 pounds. For Egypt which is right next to Turkey,  it is going to be between  60  to 120 pounds. Clearly, there is also the a situation where people can come to the Caribbean and pay between 70 to 150  pounds versus going to  Hawaii where they will pay between 60 to 120 pounds. Indeed, there are numerous examples to show that this tax is discriminatory that is why we are preparing a paper to file the complaint with the WTO.”

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