Media statement: Unilateral, discriminatory taxes on long-haul destinations

South African Minister of Tourism Marthinus van Schalkwyk read out the media statement below at South Africa’s exhibition stand at ITB Berlin 2011 on 11 March 2011. Erica Jago, general manager of Maropeng is in Berlin, promoting Maropeng and the Cradle of Humankind as Gauteng’s premier tourism attraction.

The media statement was announced in response to the unilateral, discriminatory taxes imposed on ­­travel to long haul destinations by some European countries. Van Schalkwyk said the taxes were initially believed to be environmental levies, but on closer examination it seems that this is not the case.

Issued by Australian, Kenyan, New Zealand, Seychellois, Singaporean, South African and Caribbean tourism organisations representing 33 destinations considered as long haul from Europe:

At the invitation of the Minister for Tourism of the Republic of South Africa, Mr Marthinus van Schalkwyk, tourism ministers and senior officials from long haul destinations met at ITB Berlin 2011 to discuss the unilateral, discriminatory taxes imposed on ­­travel to long haul destinations by some European countries.

At the meeting the parties discuss streamlining and growing their respective tourism industries and noted the following points in the discussion:

* Tourism is a major driver of job creation, poverty eradication and socio-economic development.
* The tourism sector is particularly important as a source of export revenue, contributing 30% of the world’s services exports – amounting to US$1 trillion a year – and 45% of the total services exports in developing countries.
* Tourism is an important driver of growth in the global economy.
* Low-carbon development of sustainable eco-tourism destinations and sustainable modes of transport are critically important.

An expected increase in unilateral and discriminatory taxes imposed on international travel by a number of European countries, and that aviation will in addition also be included under the EU’s emissions trading system from 2012, will negatively affect the tourism sector for long haul destination countries.

Noting our respective commitments to the International Civil Aviation Organisation (ICAO) we therefore express concern that these unilateral taxes and the basis for their calculation are inherently discriminatory.

These taxes will be favouring short flights over long haul travel and, more specifically, some taxes discriminate against long haul destinations through so called “distance banding” based on distances to capital cites. The order of magnitude of these taxes on long-haul destinations is excessive.

The International Air Transport Association (IATA) estimates that flight costs on these routes could increase by 3-5%, which will have a negative impact on passenger numbers, tourist volumes and downstream tourist receipts in long haul destinations.

We stress that there is no practical alternative to air travel when it comes to long haul destinations, whereas travelers in Europe may choose to avoid the burden of extra taxes by resorting to rail road or ferry modes of transport.

As like-minded long haul destinations, we are concerned about the longer term negative impacts that these taxes will have on our competitiveness and there is a need to avoid duplicative measures that could undermine progress towards a multilateral approach.

We therefore call on the countries involved to reconsider these excessive discriminatory taxes that adversely affect long haul destinations, many of which are in developing economies.

Recognising the ongoing efforts by various countries and regions, we have extended an invitation to other countries affected by these unilateral discriminatory taxes to become part of the process.