Nov 2010 Financial News

Tourism feeling the pinch from airport duty

Nov 18, 2010

Chairman of the TDC Board, George Stanley Baird, centre, surrounded by members, from left, Brian Ali, Reisha Ramnarine, Alimuddin Mohammed, Kevin Kenny, Judith Mark, Michelle Palmer-Keizer, Kevin Ratiram, Larry Nath, and Lara De Sonpere.

The number of tourists visiting T&T and the Caribbean has significantly reduced because of an Airline Passenger Duty (APD) and is likely to continue to decrease if more countries impose this tax, Tourism Minister Dr Rupert Griffith said yesterday. “The Caribbean tourism industry has been particularly hard hit. And this is also true of T&T.

“The APD has already resulted in a 12 per cent reduction in visitors to the region since 2009, according to the Caribbean Tourism Organisation. “Indeed, Germany is also looking at putting in place its own APD.” Griffith made the disclosures while delivering the feature address at the installation of the board of the Tourism Development Company Limited (TDCL) at the Hyatt Regency Trinidad. The APD is an excise duty paid by passengers flying from a United Kingdom airport.

Further charges have been added, making long distance flying significantly more expensive. Charges were hiked on November 1, 2009 and again on November 1, 2010. Before this APD had been doubled from February 1, 2007. The international economic crisis and climate change have also impacted on the way people travel, the Minister added. He said, according to the UN World Tourism Organisation, worldwide international tourist arrivals grew by seven per cent in 2010.

However, the Caribbean had a lower rate of growth. He said hotel occupancy had hit an all time low. “Indeed, at a Tobago hotel, only two guests were reported for October 2010 and tour operators have suffered as much as a 34 per cent decrease in inbound tour business.” It can no longer be business as usual in T&T’s tourism sector, Griffith stated.

More Info

Members of the new TDC Board
• George Stanley Baird—Chairman
• Larry Nath
• Kevin Ratiram
• Reisha Ramnarine Lewis
• Alimuddin Mohammed
• Kevin Kenny
• Brian Ali
• Michelle Palmer-Keizer
• Judith Mark


Source:
Yvonne Baboolal
Trinidad Guardian
Thursday November 18, 2010

http://guardian.co.tt/news/general/2010/11/18/tourism-feeling-pinch-airport-duty