Passengers travelling from the UK to the Cayman Islands
and other Caribbean destinations are paying an extra 50 per cent in airport
departure tax as of Monday, 1 November.
Airlines and travel operators in the UK have criticised
the rise in the tax, known as Air Passenger Duty, warning that it will make
family holidays “unaffordable” as the tax for passengers in economy class rises
to £75 pounds sterling, equivalent to CI$97. Previously, it had been £50.
Passengers travelling to Cayman from the UK on premier,
business or first class will see the tax increase from £100 to £150 [CI$195].
Willie Walsh, chief executive of British Airways, the
only airline with direct flights from Cayman to the UK, said airlines cannot
afford to take on the tax burden and warned that budget airlines will be hit
hardest.
The BBC reported Mr. Walsh as saying, “We’re talking
about paying almost £450 million [CI$585 million] on an annual basis to the
Exchequer through this tax. That’s £450 million that British Airways does not
have. I don’t believe [budget carrier] easyJet has the money to pay this tax
and take it on.
“These are very significant tax burdens that need to be
addressed by the [UK] government if we are to contribute to the economic
recovery that everybody wants to see.”
Virgin Atlantic and major travel agency Thomas Cook also
spoke out against the tax increase.
Virgin Atlantic’s chief commercial officer, Julie
Southern, told the BBC: “Holidays are an essential part of our lives and are
valued even more in these difficult economic times. With passengers now being
asked to pay up to 10 times more tax since APD’s introduction, the annual
family holiday will become unaffordable for many.”
This is the third significant increase in Air Passenger
Duty in three years.
Under the Air Passenger Duty, there are four bands, each
of which is determined by a destination’s distance from London. Cayman falls
into Band C of destinations between 4,001 and 6,000 miles from the British
capital.
Destinations that fall into Band A, within 2,000 miles of
London, are being increased by 9 per cent. Band B, for airports 2,001 to 4,000
from London, are being increased by 33 per cent, while Band C sees a 50 per
cent increase. Band D – more than 6,000 miles from London – is being increased
by 55 per cent.
The Caribbean Tourism Organisation opposes the tax,
stating on its website: “This discriminatory system means that flights to
Hawaii or California will be less heavily taxed than flights to the Caribbean
destinations, even though APD is intended as a ‘green tax’.
“UK holidaymakers and the overseas friends and relatives
of Caribbean nationals who live in Britain are being heavily penalised. It
would be more reasonable to place the Caribbean in the same band as the USA.”
The tax changes are irrespective of when a ticket was
booked. All travel after 1 November will be taxed at the new rate.
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