World Travel & Tourism Council attacks German passenger departure tax

16th Dec 2010
World Travel & Tourism Council attacks German passenger departure tax

As millions of people prepare to fly around the world for the holiday season, Germany’s tourism industry could lose out to rival destinations, the World Travel & Tourism Council (WTTC) has warned.

The organisation – which represents the world’s leading private tourism operators - points to the German government’s recently enacted air passenger departure tax, which has already caused airberlin and Ryanair to cut capacity.

The warning comes as emerging destinations become increasingly popular options for leisure and business travellers.

Since 2007, both Turkey and Malaysia have entered the top ten of the world’s leading destinations as their international tourist arrivals increase.

Tourism Tax

The WTTC has long made the case against such passenger taxes, particularly the UK’s Air Passenger Duty, believing them a barrier to the full growth potential of the industry and distorting the market by unfairly penalising certain destinations.

Yesterday BAA called on the British government to follow the lead of Ireland and cut air passenger duty.

“Governments continue to milk the tourism cash cow with little thought for an industry that can create jobs, generate exports and stimulate investment to power sustainable economic growth,” said David Scowsill, newly appointed WTTC president.

“The UK’s Air Passenger Duty has long set a dangerous and unhealthy precedent and it is disappointing that the German government has also seen fit to penalise the industry and millions of travellers in this way.”

Unfair Taxation

Distance-based systems unfairly penalise the economic prosperity of long-haul destinations, argues WTTC. In the case of the UK’s Air Passenger Duty for example, the Caribbean is unfairly placed in a higher taxed band than destinations which are further away like Hawaii and America’s west coast.

“If such passenger taxes are necessary,” argues Scowsill, “a more sensible approach has been taken by the United States government.

“Instead of taxation that goes straight into the treasury for all kinds of uses, the US system treats passengers from all destinations equally and a proportion of the money generated is reinvested in measures to support tourism growth.

“It’s time the German and UK treasury departments stopped feeding from the tourism trough.”


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