Budget 2014: Tax on flights to Caribbean will be reduced

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VICTORY: Chancellor George Osborne lowers punitive Air Passenger Duty

TAX ON flights to locations like Jamaica and Barbados will be reduced from 2015 to end “a great sense of injustice among Caribbean communities”, Chancellor George Osborne announced today (March 19).

Introduced in 1994, Air Passenger Duty (APD) is added to all flights depending on the distance between London and the capital city of the destination.

But with the tax rising each year, it is increasing the cost of travel to the Caribbean and has subsequently come under severe criticism.

The Voice, in support of its readers, has been backing a campaign to convince the Government into reducing the punitive travel tax and take on board the concerns of Britain’s Caribbean communities.

In today’s pledge, Osborne said as of next year, “all long haul flights will carry the same, lower, band B tax rate that you now pay to fly to the United States.”

“It hits exports, puts off tourists and creates a great sense of injustice among our Caribbean and South Asian communities here in Britain.”

FIGHTBACK: The Voice backed a campaign to convince the Government into reducing the punitive travel tax

Beverly Nicholson-Doty, chairman of the Caribbean Tourism Organisaiton, said: “This is a complete victory for the Caribbean, which, led by the CTO, has been lobbying against the unfair system which charged a higher rate of APD on flights to Barbados than Hawaii and placed the United States at a competitive advantage.

“We are delighted that the Chancellor has finally accepted the Caribbean’s proposal made in November 2010 to return to the simpler and fairer two band system.”

The chairman thanked Caribbean Governments, the Caribbean Hotel Tourism Association, British MPs and peers, the Caribbean High Commissioners in London, Caribbean Ambassadors in Brussels, the Diaspora, the World Tourism Organization (UNWTO), the World Travel and Tourism Council and the airlines and travel companies.

She added: “Rest assured that the CTO, with support of our partners, will continue to advocate on behalf of the Caribbean tourism sector. We will now proceed to examine all the implications of this very positive development and advise our members accordingly.”

Previously, APD was divided into different price bands based on the distance between the UK starting point, and the capital city of the country to which you are travelling. It means taxes on flights to the US, even if it is to Hawaii, are based on the distance to Washington.

As a result, holidaymakers to the Caribbean saw the tax on economy class flights rise from £2 per person to £83 for an adult or child, while premium class fares have jumped from £4 to £166 per person.

A family of four travelling in economy class to any island in the Caribbean will pay an astonishing £332, before the ticket price, surcharges and other taxes are added.

Comparatively, a plane journey to Orlando would cost about £280.

Since APD was introduced in 2009, the number of British visitors to the Caribbean has fallen by 12 per cent, generally, and up to 25 per cent to some islands, according to the Caribbean Tourism Organisation.

In November, MP Diane Abbott, who represents Hackney North and Stoke Newington, said APD was having a negative effect on the economy of Britain’s “traditional allies in the Caribbean.”

After the announcement was made, Trinidadian-born Baroness Floella Benjamin, OBE took to Twitter to share her joy at the news.

She wrote: “The hard fight for fairness for Caribbean on Air Passenger Duty has happened. My APPG TT thank Chancellor for listening after much lobbying.”

CELEBRATION: Baroness Floella Benjamin, OBE took to Twitter to share her joy