Caribbean travel industry welcomes APD changes announced in budget
During his budget presentation this week, George Osborne, the British Chancellor of the Exchequer, announced that Air Passenger Duty (APD) will be changed next year. After years of campaigning, this is particularly good news for the Caribbean travel industry and all long haul flights departing from the UK will carry the same, lower, band B tax rate.
After years of campaigning, travel organisations and airlines can finally breathe a sigh of relief as the British Chancellor of the Exchequer announced yesterday that Air Passenger Duty (APD) would be reformed from next year.
George Osborne confirmed during his budget presentation to Parliament that a new band B tax rate would be introduced next year for passengers on long haul flights. This is particularly good news for the Caribbean travel industry who has been calling for a return to the two band system and a reduction in APD since 2010.
With the existing APD rates, a family of four travelling to Florida in economy class will pay £240 in APD, but the same family taking Caribbean holidays will pay £300, even though Florida is further away from the UK than many countries in the Caribbean.
Mr Osborne explained:
"We will also reform Air Passenger Duty to end the crazy system where you pay less tax travelling to Hawaii than you do travelling to China or India. It hits exports, puts off tourists and creates a great sense of injustice among our Caribbean and South Asian communities here in Britain.
"From next year, all long haul flights will carry the same, lower, band B tax rate that you now pay to fly to the United States."
From 2015, there will be two Bands: Band A for short haul flights, which will remain unchanged and cover a destination 2,000 miles or less from London, and Band B for long haul flights that cover a destination more than 2,000 miles away from London.
This will mean that travellers booking flights to the Caribbean will no longer have to pay higher APD than many other countries which is also great news for hotels, resorts and travel companies in the tropical region who rely on tourism and UK visitors.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 10:30 - 18:30 GMT
Popular Holidays In Caribbean and Costa Rica Browse all
Delight in the best Cuba has to offer with this stunning beach and city twin centre holiday
- Add Havana half-day tour from £49pp, taking in Revolution Square, Malecón and the UNESCO World Heritage Site of Old Havana
- Iberostar Tainos is designed in the style of a traditional Caribbean village with two-storey bungalows that comprise spacious and elegant rooms
- Enjoy a historic stay in Havana at the NH Capri Hotel, which opened in 1957 and was initially run by the mafia
Relish the timeless charms of Cuba from the comfort of Cuba’s most cutting edge hotels
- Stay at two of Cuba’s most cutting edge hotels, bursting with modern comforts
- Relish an all-inclusive beach retreat, boasting an overabundance of facilities
- Explore Havana’s charismatic, timeless and bustling streets
Ideal for trendy couples - stay at a chic and sleek hotel in the heart of vibrant Havana and then Stay next to Cuba's famous Varadero beach
- Exclusive Couples offer - Welcome Cocktail, 1 hour free Wifi Access in Havana plus a bottle of wine on arrival, 30-minute massage and a Romantic Dinner in Varadero
- Blau Varadero offers something for everyone with as little or as much as you want to do on offer including a spa
- Virgin Atlantic Sale, huge reductions sale ends 28th Feb
- Be swept away by the amazing views of Havana from Capri's rooftop pool
Discover the relaxing Varadero and sink into sublim tranquillity
- Experience the beauty of Varadero Beach where you can relax and unwind on the tranquil white sandy beaches whilst enjoying the 24-hrs All-inclusive offered at the Luxurious Iberostar Varadero
- Stay in Havana's most highly rated hotel, with an iconic location facing Central Park
- Discover Cuba whilst staying at the 2 Top rated TripAdvisor hotels in Cuba
One of Havana’s most historically popular mafia-run hotels of the 50s, the Capri is a legendary property with over...
Combine exploring the old dimes of Havana with a refreshing beach retreat in Vardero on an unforgettable twin centre...
Start your holiday at The Melia Habana Hotel, located in the heart of the elegant Miramar district, overlooking the sea....
Come to the beautiful island of Barbados and feel the magic of the Caribbean sun. Seven rejuvenating days in the...
You can enjoy all the aspects of this charming island, as the elegant eco-friendly property is located near all the...
Escape to the pristine beaches of the south coast of Barbados for a holiday you will never forget at Coconut Court Beach...