Freeze air passenger duty, urges Institute of Directors

THE burden of air passenger duty is threatening to hold back Birmingham Airport’s ambitions, Institute of Directors West Midlands chairman John Rider has warned.

And he called for a freeze on APD as latest statistics showed more and more proceeds pouring into the Treasury.

He said: “My concern is that all this is leading to flattening passenger demand and, together with fuel price increases, will put a dampener on airline movements and therefore Birmingham Airport’s business.

“I am looking forward to the much-needed runway extension which is near to a start. The airport must have connectivity to China, the Far East and the West Coast of America to enable more growth and investment so the West Midlands can benefit fully from the economic recovery.

“Heavy taxes, too few flights and visa restrictions mean the UK is missing out on opportunities in developing markets. France and Germany each managed to attract four times as many Chinese visitors as the UK in 2010. In total, France earns ten times as much from Chinese tourists as we do.”

Rider argues APD is no longer an environmental tax but “a pure revenue raiser”.

He said: “APD puts travellers off coming to the UK. It makes us uncompetitive against the rest of Europe and hits jobs in aviation and tourism. There are already too many barriers to flying to the UK. Our airports are filling up and visa restrictions are limiting tourist numbers.

“We appeal to the Chancellor to cancel the APD rise planned for April.”

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