APD to reduce foreign holidays

The increase in Air Passenger Duty (APD) means smiles like this could be a thing of the past

The number of Brits deciding to take a caravan holiday in the UK could rise as a result of an increase in Air Passenger Duty (APD) – a tax that some claim is stifling growth of the country’s travel industry.

According to Euromonitor International, the levy is inhibiting the sector, with its effects worsened by the recently increased rate which came into place on November 1st.

Global travel and tourism manager for the firm Caroline Bremner explained that other nations have realised that the tax is costing them and decided to ditch it.

“For example, the Netherlands abandoned the APD this year because it saw that it was losing revenue,” she said.

Ms Bremner added that the internet was becoming a major tool for holidaymakers, with online bookings rising by four per cent this year.

However, the market as a whole is expected to shrink by one per cent during 2009, the expert noted.

Her comments follow a World Travel Market survey which found that 52 per cent of Brits are likely to reduce their overseas holidays as a result of the increase in APD.