Johnson: British APD decision not personal

Wed, Dec 14th 2011, 09:18 AM

The director general at the Ministry of Tourism has said he's "disappointed but not surprised" regarding the British Parliament's decision to keep high air passenger duty (APD) charges in place for tourists travelling to the Caribbean.  David Johnson called the lobbying effort by The Bahamas "extensive".  Although British tourists represent just five percent of the tourism market in the country, the decision represents a further blow to the industry and will hamper further growth.

"We realize this is a pivotal decision," Johnson told Guardian Business.  "I felt all along that the U.K. is having a tough time with tax revenues.  A lot of social services are being cut back and you have a government that wil be reluctant to shut off revenue.  It's just an economic reality."  The determination, reported by Guardian Business last week, was described as a "slap in the face" by the Caribbean Tourism Organization's (CTO) chairman, Ricky Skerritt.  He said it dismisses all of the research and information CTO has provided to the British government over the last three years.

First introduced by the British government in 1994, the APD continued to rise in both 2009 and 2010.  Edmund Bartlett, the Jamaican minister of tourism, estimated that it costs a family of four travelling economy class an addition $478 to fly to the Caribbean from the U.K. due to the APD.  While The Bahamas has a relatively low number of British tourists, Johnson pointed out some nations in the region more heavily rely on this market.

Johnson also agreed with Skerritt regarding the scale of the lobbying effort.  Members of CTO, the Bahamian minister of tourism, members of the private sector, representatives from the hotel and tourism associations and even influential individuals of Caribbean descent in the U.K. were all involved in the effort to overturn the ruling.

  "It was well researched and well represented," Johnson told Guardian Business.  "I don't think it was weak in any area.  At the moment, moving on from here, it is an insurmountable situation at this time.  We need a lot of soul-searching in terms of figuring out how to change their minds."  Johnson felt the decision was "tied to the fiscal issue the government is facing", and not personal in any way.

Click here to read more at The Nassau Guardian

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