Following the G8 summit last week, travel industry associations are continuing their united opposition to a proposed new aviation tax to fund development in poor countries. Airports Council International, the Asia Pacific Travel Retail Association, the Association of Asia Pacific Airlines, the Duty Free World Council, the International Air Transport Association, the Pacific Asia Travel Association, and the Tax Free World Association jointly denounce the taxation proposal.
The group says aid for developing countries is laudable, but funding it through a new tax on aviation is misguided and counterproductive.
The group says any additional tax would decrease airline efficiencies and reduce demand for travel and tourism, which is a major driver of economic development in many poor countries.
The Pacific Asia Travel Association (PATA) Chairman Mr Nobutaka Ishikure, said: We must remind governments that airlines are not under-taxed, but are over-charged. Airlines play a critical role as a catalyst for economic development.
Development is a serious issue in need of a serious solution. More tax on air travel is not the way forward.
Travel industry research shows that, with related industries, the air transport sector supports US$1.4 trillion of economic output, or 4.5% of global GDP.