UK tourist tax hands yet another competitive advantage to EU rivals

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UK tourist tax hands yet another competitive advantage to EU rivals​

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  • Passenger numbers at Heathrow fell by 88% in November, as travel restrictions and a second lockdown took their toll. Based on current forecasts and continued decline in passengers, the decision has been taken for Terminal 4 to remain non-operational until the end of 2021.
  • Heathrow is calling for targeted, sector specific Government support to protect jobs and help drive the UK’s economic recovery. These include full business rates relief for all UK airports and abandoning the disastrous “tourist tax” which will make the UK the only country in Europe not to offer tax-free shopping for international visitors. The move is expected to result in 2,000 retail job losses at Heathrow alone.
  • Cargo volumes remain significantly below last year, reflecting the impact of COVID-19 on the UK’s international trade.
  • Heathrow has partnered with transatlantic carriers British Airways, American Airlines, United Airlines and Virgin Atlantic on a cross-industry study aimed at eradicating the need for quarantine for passengers, by demonstrating the effectiveness of pre-departure testing in reducing transmission while making free movement easier.
Heathrow CEO, John Holland-Kaye said: “2021 should be the year of Britain’s economic recovery. But recent announcements, such as the tourist tax, could be the final nail in the coffin for struggling businesses such restaurants, hotels and theatres that rely on inbound tourists, as well as for retailers. To make Global Britain a reality, the government should be helping the aviation sector to survive, to develop routes to our key trading partners, and attract businesses and tourists to come to Britain to spend their money."

Traffic Summary
November 2020
Terminal Passengers
(000s)
Nov 2020% ChangeJan to
Nov 2020
% ChangeDec 2019 to
Nov 2020
% Change
Market
UK 57-86.1 1,377-69.0 1,774-63.1
EU 240-88.5 7,703-69.6 9,857-64.0
Non-EU Europe 68-84.0 1,702-67.4 2,174-61.8
Africa 63-77.8 1,040-67.5 1,351-61.7
North America 82-94.2 3,737-78.4 5,290-71.8
Latin America 20-82.2 389-69.3 506-63.4
Middle East 103-83.1 2,237-68.1 2,980-61.3
Asia / Pacific 114-87.1 2,780-73.6 3,731-67.6
Blanks -0.0 10.0 10.0
Total 747-88.0 20,967-71.8 27,663-65.7

Air Transport Movements Nov 2020% ChangeJan to
Nov 2020
% ChangeDec 2019 to
Nov 2020
% Change
Market
UK 690-80.5 14,168-62.0 17,571-56.3
EU 3,190-80.5 78,745-59.2 94,937-54.7
Non-EU Europe 760-78.2 16,137-59.7 19,689-54.9
Africa 596-52.6 6,700-51.7 8,054-47.2
North America 2,346-63.9 32,410-57.7 39,139-53.0
Latin America 246-48.0 2,642-52.0 3,138-48.0
Middle East 1,294-49.4 15,134-45.8 17,795-41.7
Asia / Pacific 2,218-41.5 22,446-48.3 26,369-44.5
Blanks 24- 149- 149-
Total 11,364-70.1 188,531-57.0 226,841-52.4

Cargo
(Metric Tonnes)
Nov 2020% ChangeJan to
Nov 2020
% ChangeDec 2019 to
Nov 2020
% Change
Market
UK 13-78.9 491-34.7 592-29.0
EU 8,678-0.6 74,021-24.6 82,397-23.1
Non-EU Europe 6,66318.4 44,798-22.7 49,694-21.1
Africa 7,675-4.8 62,038-29.0 69,387-27.3
North America 37,142-26.9 378,854-30.8 428,871-28.7
Latin America 3,674-18.8 30,704-39.3 34,956-36.8
Middle East 20,602-12.6 201,048-17.7 222,998-16.2
Asia / Pacific 35,190-14.2 301,831-33.6 340,807-31.6
Blanks -0.0 -0.0 -0.0
Total 119,635-16.0 1,093,783-29.0 1,229,701-27.1

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