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WTTC condemns new 25 billion dollar US raid on air travel

WTTC condemns new 25 billion dollar US raid on air travel ( The World Travel&Tourism Council has today condemned a US$25 billion raid on airline passengers in the United States as “confused and counter-productive” and called on the US administration to think again about taxing an industry that is a driver of the US economic recovery.

The US administration is proposing to raise US$25 billion over 10 years through changes to the Aviation Passenger Security (APS) fee. APS is currently levied at between US$2.50 and US$5.00. Under the proposals, the current range will be replaced with a statutory fee minimum of US$5.00, with annual incremental increases of 50 cents from 2013 to 2017, to reach US$7.50 in 2017.

Of the US$25 billion additional revenue raised over 10 years, at least US$15 billion will be used for general taxation purposes, rather than passenger security.

Speaking after meetings today on Capitol Hill, Washington, David Scowsill, WTTC President&CEO, said:

“We fully support the US administration’s efforts to reduce its debt burden, but do not believe it is good economics to raid US$25 billion from an industry that is a driver of growth and recovery at a time when President Obama is keen to create millions of job through the US$450 billion American Jobs Act.

“Travel and tourism currently contributes more than US$1,300 billion or 9% of total US GDP, generates 9% of its total exports, and supports 15 million jobs. Taxes on travel and tourism tend to do more harm than good economically – as higher charges discourage high-spending visitors. Indeed, the US administration recognizes that each and every visitor contributes US$4,000 to the economy.

“WTTC believes that this plan has a laudable objective, but it is confused and likely to be counter-productive. We urge the Obama administration to send this plan back to the drawing board with instructions to promote an industry which will drive economic recovery and job creation – not damage it.”

MEDIA CONTACT: Anja Eckervogt, Media Relations Manager, Phone: +44 (0) 2074816484, Email:

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