Britain travel tax cut offers relief for New Zealand tourism industry

Source:Xinhua Published: 2014-3-20 12:11:13

New Zealand tourism chiefs on Thursday welcomed the British government's decision to cut taxes on long-haul flights to the country, saying it would encourage a growth in tourism.

The British government said the air passenger duty (APD) on New Zealand flights would fall from April 1, 2015, from 97 British pounds (160 US dollars) to 71 pounds (117 US dollars) per person.

"I have consistently advocated for such a change, which will benefit traveling New Zealanders and encourage more tourists to come to New Zealand," New Zealand Prime Minister and Tourism Minister John Key said in a statement from his office.

Britain continued to be an important tourism market for New Zealand, but in recent years, tough economic conditions had depressed growth in tourism numbers, not helped by the levy, he said.

Britain is New Zealand's fourth largest visitor market with 191, 632 arrivals last year and third largest in terms of spend with a total estimated spend of 608 million NZ dollars (518.68 million US dollars).

Before the extra air passenger duties were introduced in 2008, Britain was New Zealand's second largest visitor market by both arrivals and spending.

In a joint submission to the British Treasury in 2011, the Tourism Industry Association New Zealand (TIA), the Tourism Export Council, the New Zealand Airports Association and the Travel Agents Association of New Zealand argued that the APD, combined with other air travel taxes, was a strong disincentive for British visitors to travel to New Zealand.

"Taxes like the UK APD and the Australian passenger movement charge are a handbrake on growing sustainable air connectivity," TIA chief executive Martin Snedden said in a statement Thursday.

"The UK has been a tough market for us over the last five years, not helped by the high level of the APD. When taken with the strength of our dollar, it has made this market challenging," Lesley Immink, chief executive of the Tourism Export Council, said in a statement.

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