The decision by the UK chancellor of the exchequer to once again raise Air Passenger Duty is economically self-defeating, according to research from the World Travel & Tourism Council.
Chancellor George Osborne confirmed the rise in his Autumn Statement yesterday.
However, research conducted for WTTC by Oxford Economics earlier this year shows removing Air Passenger Duty would result in an additional 91,000 British jobs being created and £4.2 billion added to the economy in 12 months.
WTTC president David Scowsill said: “Tourism, of which aviation is the fundamental driver for the UK, generates 2.3 million jobs and contributes over $100 billion to the UK economy every year.
“While the UK chancellor’s statement stresses the need for the UK economy to find growth opportunities, he has chosen to further tax an industry that helps to sustain millions of jobs in the UK.
“This tax is damaging the economy at a crucial time, and is having a negative effect on trade with countries in the Caribbean, Africa and Asia.
“Rather than recognising the impact of APD on the overall economy and reducing Air Passenger Duty, the UK has opted to further harm the economy and prevent job creation.”
Head over to the WTTC website for the full report.