Taxation

Impact of international transfer passenger charge in Peru
Imposing a charge of 31 USD per international transfer passenger in Lima will increase round-trip cost of travel for these travelers by an average of 5% and result in a fall in transfer passenger numbers of between 15-20%. The industry’s overall contribution to GDP would fall by USD 17-23 million and 1,200-1600 jobs would be at risk. In addition, the sector’s contribution to public finances would fall by USD 14-18 million.

Full report (pdf)

Impact analysis of taxation proposal: Sweden
Assessment of demand and wider economic impacts of proposed passenger taxation increases in Sweden.
Full report (pdf)

Impact of a tax on foreign visitors to Chile
Imposing a tax on foreign arrivals to Chile by air would increase the cost of travel for these visitors by approximately 1.7% and result in a decrease in foreign visitor arrivals by air of approximately 2%.  The industry’s overall contribution to GDP would fall by USD 37 million and 1,000 jobs would be at risk. In addition, the sector’s contribution to public finances would fall by USD 8 million.

Full report (pdf)

Economic benefits of reducing fuel costs in Ghana
High costs for aviation fuel in Ghana has limited air connectivity and risks contributing to a further deterioration of air links as evidenced by the exiting of some long-haul carriers from this market.  Three price reduction options were identified where revenue generation from the sale of aviation fuel would result in relative and absolute peaks.

Full report (pdf)

Impact of aeronautical tariff Delhi Airport
New tariffs determined by AERA based on the shared till inflation – X price cap model would impose an increase in travel costs of 4.9 percent for domestic and 7.8 percent for international in the first year and will lower demand. This will create significant negative economic impacts for the travel and tourism industry as well as the local economy.

Full report (pdf)

Economic benefits of reducing fuel taxes in the Dominican Republic
Fuel taxes add US$76 million to the cost of fuel uplifted in the Dominican Republic. This adds 16.4% to the cost of fuel, damaging the competitiveness of the travel and tourism sector. Abolition of these taxes would reduce travel costs 3.1%, boost tourist arrivals 174,000, add US$355 million to GDP and support 25,000 new jobs. .
Full report (pdf)

Analysis of UK APD proposals

IATA analysis of proposed changes to UK Air Passenger Duty indicates they would be positive for the broader economy an address inequities of the current system.
Full report (pdf)

Impact of proposed Iceland departure tax
Iceland’s proposed new air passenger departure tax averaging ISK 245 or € 1.53 per departure would add 0.3% to the cost of the average return journey. We estimate that over 4,000 tourist arrivals would be diverted to other destinations.
Full report (pdf)

Impact of proposed German departure tax
The imposition of a tax of €8 for short haul, €25 for medium haul and €45 for long haul passengers departing from German airports would add 3.6% to the cost of air travel for businesses, tourists and international visitors in 2011.  Fewer passenger departures will reduce German airport and airline revenues as well as broader business and tourism activity.

Full report (pdf)

Analysis of the impact of a new rise in UK air passenger duty
The increase in APD would raise the cost of travel from the UK by 2.4% in 2010-11. But long-haul travel will be more severely affected. The effect of raising APD will adversely impact not only the aviation industry – with £700 million of revenues lost - but also will cause economic damage to the wider UK economy.
Full report (pdf)

UK APD Increase
Climate benefits of 53 million versus GDP losses of 400 million plus losses to air travellers suggest this policy has not been put to a cost-benefit test. It may provide the Chancellor with an extra 1 billion in revenues and enhances his green credentials but it makes little economic sense.
Full report (pdf)

Impact of reducing crown rents on Toronto Pearson International Airport
The fiscal impact of the proposed reduction in crown rents of an average C$57.6 million a year would be offset by the extra C$62 million in tax revenues generated from the economic activity associated with the additional airport passengers. There would also be wider economic benefits including an estimated additional C$300 million in business revenues, 3000 jobs and C$80 million wage income in the southern Ontario economy.

Full report (pdf)

European Aviation Taxes
Airlne passengers are already highly taxed in Europe. IATA estimates that the tax burden was at least 5.9 billion in 2004.
Full report (pdf)

The cost of EU regulation
The annual cost to EU airlines of the regulations imposed on them in Europe is estimated to be at least 5.9 billion. Since 2001 this financial burden has risen by more than 2.5 billion.
Full report (pdf) 

Aviation taxes and charges
Evidence from Europe demonstrates that aviation is not under-taxed compared to other modes of transport, once payments for the cost of infrastructure are taken into account.
Summary report (pdf)
Full report (pdf)