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Mark Tanzer, ABTA Chief Executive said: “It is now up to us to make sure we brief and have full and detailed discussions with Government Ministers and civil servants before George Osborne reports back in the autumn.

“While we broadly welcome the proposed switch from Air Passenger Duty to per plane duty, it is essential that the levels and the mechanisms are set correctly so that ordinary people are not taxed out of flying. We have already held a meeting with Justine Greening - the Treasury Minister taking the lead on aviation taxes – and we will ensure that we continue to meet with her team to fully brief them on our sector.

“Travel matters to our economy – aviation contributes more than £11 billion in GDP, to jobs – 700,000 British jobs depend on aviation - and the welfare of hardworking people – nearly 40 million holidays were taken abroad in 2009 by British citizens. If George Osborne wants everyone to know that the ‘UK is open for business’ – then it must be affordable for people to get here and depart.

“Tax on aviation – through Air Passenger Duty – in this country has risen disproportionately over the past five years. We all know that George Osborne has to balance the books, but to maximise the tax take on aviation, they must set it at a level where people can still afford to fly - not tax people out of the skies.

ABTA has always stated that there should be a fair tax take for aviation, and while we broadly welcome the move to a per plane tax – this system will incentivise airlines to fly more efficiently with full passenger loads - the level of the new tax is crucially important.

“While leisure travellers are particularly price sensitive, higher aviation duty also has the potential to have a very detrimental effect on inbound tourism to the UK.

Furnished Holiday Lettings
Mark Tanzer also said: “We welcome the fact that Government listened to ABTA’s arguments on furnished holiday lettings and the decision not to implement the repeal of the special tax rules for furnished holiday lettings and will respond to the consultation due to be published in the summer.”

For further information contact:
Sean Tipton, Senior Press Officer, tel: 020 3117 0513,
Frances Tuke, Public Relations Manager, tel: 020 3117 0514, Mobile 07850 712 325.
Out of Hours:  Contact the Duty Press Officer via pager: 07659 190 987
E-mail: press@abta.co.uk
Web: www.abta.com

Notes to Editors:

Rises In Air Passenger Duty for a Family of Four

               Band A: Spain Band B: Florida Band C: Caribbean Band D: Australia
Summer 2006    £20           £80              £80              £80
Summer 2007    £40           £160            £160            £160
Summer 2008    £40           £160            £160            £160
Summer 2009    £40           £160            £160            £160
Summer 2010    £44           £180            £200            £220
Summer 2011    £48           £240            £300            £360

ABTA – The Travel Association was founded in 1950 and currently has 1,351 members with 5,700 outlets. Members include travel agents, tour operators and support services right across the spectrum from small family-owned businesses to the largest tour operators. 

ABTA is the largest travel association in the UK and its members provide 90% of the foreign package holidays in the UK as well as selling millions of independent travel arrangements. 

In 2008 ABTA merged with the Federation of Tour Operators [FTO], thereby cementing its role as the leading travel association and increasing benefits for both ABTA and FTO members. Both the ABTA brand which is highly recognised by consumers and the FTO brand which is well known in destinations will be retained.

As part of its comprehensive package of services to members, ABTA, as a non-party political organisation works to represent the interests of its Members to government and key opinion formers in the UK and EU.