06 September, 2010 - Published 15:08 GMT

Caribbean's airport tax concerns

Caribbean tourism representatives began a fresh round of talks with UK officials on Monday over the British government's plans to increase an air passenger tax for travellers to the region.

Currently, each economy class traveller to the Caribbean pays £50 (US$77) in Air Passenger Duty (APD).

From 1 November this will increase to £75 (US $115) - the second in as many years.

The levy for premium economy, business and first class passengers will rise from £100 to £150.

Six tourism ministers are participating in the three-day meeting: Antigua's John Maginley, Richard Sealy from Barbados, Jamaica's Edmund Bartlett, Glynis Roberts from Grenada, St Lucia's Allen Chastanet and Richard Skerrit from St Kitts & Nevis.

Not fair

Regional tourism officials fear that the price hike will result in fewer UK visitors.
They argue that it is not fair that travellers to the Caribbean should pay more than those going as far as Hawaii.

The APD is charged at four rates and the Caribbean falls in the more expensive category, band C, which covers flights from 4001- 6000 miles from the UK, while the United States is in the cheaper band B, which covers flights from 2001 - 4000 miles.

Last week the chief executive of British Airways, Willie Walsh, warned that politicians should not risk harming economies that depend on tourism.

The Caribbean regularly welcomes large numbers of British visitors, with tourism representing as much as 70% of the gross domestic product in some countries.

Secretary General of the Caribbean Tourism Organisation (CTO), Hugh Riley, says this week's meeting underscores the seriousness of the region's intent to minimise the possible damage that will result from the increase.

"The rises come at a time when a second British recession is being forecast and the Caribbean governments and people feel that it is paramount that we discuss the issue with every responsible body in order to find a mutually acceptable solution as soon as possible," Mr Riley said.

Projected income

According to figures from the London-based Caribbean Council, official documents accompanying the June British budget statement and produced by the Office of Budget Responsibility, revenue from the APD showed income at £1.9 billion ($2.9 billion) in 2010.

This is expected to rise to £3.8 billion ($5.8billion) by 2016.

A Conservative government in 1994 had announced what was then called a "green tax" aimed at accounting for the aviation industry's impact on the environment.

During his June budget state, British Chancellor of the Exchequer (Finance Minister) George Osbourne had said that any major changes to te APD would be "subject to public consultation.”

Regional tourism officials are also considering a legal challenge to the planned increase, saying the tax rise would negatively affect their tourism export.

The Ministers and the CTO delegates are expected to meet with British Government officials, members of the British Air Transport Association, major tour operators and airlines, and the British Caribbean All Party Parliamentary Group.