Saturday 24 March 2012

UK breaks set to increase after APD tax rise

The controversial tax hike on Air Passenger Duty is set to boost holiday staycations in the UK, according to a survey by a leading holiday rental company.

On Wednesday (21/03/12) it was confirmed that there wiill be an eight per cent double inflation rise in air passenger duty, starting April 1st. This tax is set to make flying more expensive for holidaymakers – a family of four travelling economy class to Florida could pay £80 on top of their trip.

As a result, two thirds of holidaymakers are more likely to take holidays in the UK, according to the holiday rental company’s survey.

It also looks like holidaymakers would choose to spend the money they saved by putting it back into their holiday experience. Of the people questioned, 30 per cent said that they would upgrade their accommodation with the savings made from avoiding the tax, whilst 35 per cent would use the money to take a second staycation holiday.

A spokesperson for the company who conducted the survey, said: “We expect a real surge in bookings from April as the impact of Air Passenger Duty hikes kick in. If you consider that a family of four travelling to Spain could pay up to £128 in tax alone, and the same family flying to Australia could pay in excess of £700 it becomes very clear why this boost is expected.”

The APD hike, which is an eight per cent double inflation rise in air passenger duty, has been condemned by the aviation industry as “a double tax increase for passengers”.

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