The Tribune

Caribbean hoteliers yesterday expressed outrage over the UK's decision not to change its Air Passenger Duty (APD) banding structure, with the 8 per cent increase set to be imposed from April 2012 increasing airlift (access) costs to the Bahamas for European and British visitors. The move impacts about 8 per cent of the Bahamas' total stopover visitors, and the Caribbean Hotel and Tourism Association (CHTA) said: "This decision demonstrates the UK's complete disregard for the future economic prosperity of the Caribbean and the role of tourism in development. "The decision taken by the UK Treasury is in total contrast to the stated policy of the UK's desire to improve its relations with the independent Caribbean and Britain's Overseas Territories in the Caribbean." The CHTA added: "Given that the UK Chancellor himself drew attention to the discrimination of the APD band structure vis-a-vis the rates for the Caribbean and the U in his 2011 Budget statement, it is incomprehensible that he has subsequently chosen to continue this economic discrimination against the Caribbean and its community in the United Kingdom." The CHTA said that in 2010, UK prime minister David Cameron conceded that "tourism is a fiercely competitive market", and that tourism is "fundamental to the rebuilding and balancing" of the UK economy. "The discrimination of the APD band structure is demonstrated by the fact that the APD tax on an economy class ticket from London to Barbados, a distance of 4,190 miles, is US$130 compared to an APD tax of US$104 for London to Honolulu, a distance of 7,220 miles," the CHTA said. "For flying 72 per cent further to Honolulu, the APD charged is 20 per cent less than it is on a flight from London to Bridgetown, even though Barbados is much closer. "The APD charged to Barbados on a per mile basis is 114.7 per cent more expensive when compared to the per mile charge to Honolulu. In addition, visitor arrivals from the UK for 2007 to 2010 have decreased by 19.7 per cent, while arrivals from all other destinations have increased by 2.2 per cent for the same period." The CHTA said the Caribbean was the most tourism-dependent region in the world, with seven of the world's 10 most dependent countries on the industry. It added that the UK decision comes at a time when Caribbean tourism revenues have fallen by $5 billion in the past three years. "The failure to amend the APD banding also demonstrates a complete disregard for the impact of APD on the Caribbean community living in the UK, which maintains strong links with the Caribbean," the CHTA said. "Data suggests that they have already been forced to decrease their visits by 20 per cent since the four-band system was introduced. Increased ticket cost is given as the reason for this. The Caribbean community on the whole are UK voters, and their concerns have been disregarded also. In addition, both British Airways and Virgin Atlantic have announced schedule reductions to two major Caribbean destinations, effective April 2012. "The message today from the UK government to the Caribbean is clear. All of the history, the encouragement to switch from bananas and sugar to focus on tourism as the economic engine of Caribbean growth, and the comments about the value of the Commonwealth, seem not to matter to the UK Treasury. "The UK's response today shows that it does not value the two-way tourism trade between the UK and the Caribbean which supports jobs and growth in both the Caribbean and the UK. Nor does it acknowledge the extra-territorial impact that this tax is having on Caribbean nations, whose economies and people are also suffering."