| European long haul air travel taxes may affect tourism |
| Written by Buanews | |||
![]() Tourism Minister Marthinus van Schalkwyk has warned that arbitrary taxes imposed by certain European countries on travel to long haul destinations could adversely affect travel to these destinations. The minister, who is currently in Berlin for the ITB 2011 - a leading travel industry convention, discussed the issue with tourism ministers and senior officials from long haul destinations on the sidelines of the convention, before briefing the media. Representatives of the long haul destinations involved in the meeting included those from Australia, Kenya, New Zealand, Seychelles, Singapore and the Caribbean. Significant job losses would be become a reality unless the European countries in question put a stop to the "excessive, discriminatory unilateral taxes" on travel to long haul destinations, van Schalkwyk cautioned. A major concern shared by van Schalkwyk and others at the meeting was that the taxes imposed by some European countries could adversely impact travel to long haul destinations, at a time when global tourism arrivals were picking up after the economic recession. The minister acknowledged the rights of countries to raise revenue and fund tourism growth, saying many countries did so through fair, reasonable and transparent levies or taxes. However, some European countries discriminated against long haul destinations through so-called "distance banding" resulting in passenger departure levies that "defied any sense of fairness."This became a problem with global ramifications, he said. The minister said while these unilateral taxes were first introduced as a green or environmental tax, they were not being re-invested for environmental purposes or green growth in tourism and aviation. The taxes are expected to add three to five percent on air ticket prices from these European tourism source markets, while adversely impacting passenger numbers and tourism revenue in the long haul destinations. Travellers expected to be hit the hardest include the lower income passengers and long haul passengers. While short haul travellers in Europe had the option avoiding the burden of the extra taxes by using the road, rail or ferry, those travelling to long haul destinations had no other alternatives.Those at the meeting argued that taxes could no longer be regarded as fair or reasonable and stifled development. They added that the taxes hit developing countries the hardest and discriminated against long-haul destinations through the 'distance banding' based on distances to capital cities. BuaNews
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