Travel industry software specialist Multicom has called on the government to rethink an expected rise in APD next year due to the impact it will have on struggling EU destinations.
This year the government froze APD in the March Budget, but a double-inflation rise is expected next year. An indication of government plans on APD is expected in November 29 in the chancellor’s Autumn Statement.
Multicom managing director John Howell fears further increases in APD will not only damage the UK travel industry but put further pressure on Eurozone countries like Greece.
“If the Chancellor presses ahead with plans to increase APD next year as expected it will be more than just UK families that will suffer.
“Increasing APD rates so heavily is not only going to impact the travel industry in this country but it is also potentially disastrous for Eurozone countries already in crisis.
“The damage to the economy of Eurozone countries hit by a fall in visiting UK holidaymakers especially Greece, is a factor often overlooked in this debate but one that politicians ignore at their peril.
“A significant drop in the number of British families who can afford to take a holiday in these already difficult times could be devastating for many Eurozone destinations.
“Conversely, higher APD, which also affects inbound tourists when they leave the UK, alongside the rise in VAT will be a further deterrent to overseas visitors coming to the UK.
“The Chancellor needs to listen to and heed the concerns of the industry and the growing strength of opposition to any increase in APD before the damage becomes irreparable.”