BASSETERRE, ST. KITTS, NOVEMBER 9TH 2010 (CUOPM) - The Caribbean Tourism Organisation has proposed reforming air passenger duty by charging one rate for flights within Europe and another for long-haul journeys.
The proposal was submitted to the Treasury, along with a detailed assessment of the impact of APD in Caribbean countries by the CTO chairman Sen. the Hon. Richard “Ricky” Skerritt, who is also St. Kitts and Nevis; Minister of Tourism and International Transport.
It would mean all European passengers paying a higher rather than they do now, but a flat rate for long-haul flights that the CTO said would end discrimination against countries that relied on long-haul tourists to develop their economies.
The proposal and assessment of economic impact of APD was drawn up after six Caribbean tourist ministers met UK government ministers in September.
Minister Skerritt said the dossier showed the UK market was the only source market to show a decline in visitors to the region in the first quarter of 2010, suggesting the decline was directly linked to APD.
The CTO argues that people flying short distances are being taxed less than long haul passengers because travel to short-haul countries represents 45.5% of emissions but only 36% of the tax take.
In comparison, travel to countries in the second distance band of APD as it stands represent 25.7% of emissions but 33% of the tax take.
