With the world still moving from one economic crisis to the next and what appear to be no short or even medium term hope of the fundamentals changing, almost without exception, governments worldwide are becoming desperate to find ways of cutting spending and increasing revenues. Some of the their initiatives are long over due as well as some changes are for the better. Some however are ill conceived and are only going to have long term negative impacts of economies. This is especially true when it comes to the travel sector.
Those of us in the industry know well the incredible value and enjoyment that travel brings – the opportunity to discover all of the beauty, learning, meaning and fun that the world has to offer. However what our governments often forget is that the travel industry is also responsible for millions of jobs, billions in investment, and trillions in revenues.
Sadly, the hard, quantitative, comprehensive value of our industry is not only being overlooked by government leaders – it is in fact being worked against. The travel industry has become an easy target for new government taxes. This because despite our size, we do not act with a collective voice and those who frequently are taxed are not local residents but the international traveller. This is shortsighted, as the impact is decreased demand.
Travellers in the UK and Euro-zone already know this painful reality all too well. The creation of new charges being applied onto travel such as APD (Air Passenger Duty), ETS (Emissions Trading Scheme), local room taxes and entry visas to name just a few of the most recent, are already acting as an increasing deterrent to travelers. Many travelers are either deciding to go elsewhere or finding they simply cannot afford to take the holiday they have always dreamt of.
Governments need to recognize that they cannot afford for travelers not to travel to their Country. It’s not about governments supporting a sector of the economy that promotes rest and play. It is about governments supporting an industry that keeps people working, keeps investors investing, and keeps visitors spending. Focus of government needs to shift. Industries that work to create jobs, investment, earnings and goodwill, need to be thanked, not taxed. Credit where it is due.