Isra-Mart srl: Tourism bosses’ long-hop tax fears

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Isra-Mart news:
A Queenstown tourism chief fears a green tax hike on long haul flights from the UK could set a harmful precedent.

The British Government has announced its Air Passenger Duty (APD) will increase next April.

The levy – which goes up from £85 to £92 ($170-$184) for flights to New Zealand – is banded on distance travelled.

Destination Queenstown boss Tony Everitt says: “It sets a precedent for other countries around the world.
“That’s the thing that needs to be watched out for.

“I wouldn’t expect this single action to have an immediate significant impact on Queenstown.

“Obviously it is not desirable. It is great the Minister [John Key] is on the case because the UK is an important market for Queenstown, in the top five.”

Prime Minister John Key, also Tourism Minister, is lobbying the British Government on what he regards as an unjustified tax.

Key says environmental concerns have already been addressed through the European Union’s extension of the Emissions Trading Scheme to aviation emissions.

Key says: “That puts a levy on airlines – meaning there is no justification for an additional duty on air passengers which discriminates on the basis of distance.

“The APD places a significant burden on New Zealand businesses, on families who travel, and on our tourism industry,” Mr Key says.

Last month, Key told Mountain Scene he was concerned about what he viewed as inappropriate taxes getting a hold in the UK and extending to other places.

The Tourism Industry Association, New Zealand, is lobbying on the charge, which for the first time will also cover business jets.

Everitt says: “It is something that needs to be addressed on a national and international level.

“We support the Minister and Association’s efforts to get some relief on this.

“The UK market is a tough one for us and other destinations at the moment due to the economic situation there. We do want to see that turn around.”

The APD will be set at £13 for short-haul flights, £65 for mid-distance and £81 for between 6400km and 9600km.