Passport fees rise - as too few are travelling

 

Wednesday, Jul 08,2009, 11:27:59 AM   Click:

In times of recession, many countries are looking to reduce taxes and expenses that directly affect travel and tourism.

Thus, the Dutch and Belgians, among others, have reduced or temporarily suspended airport charges. Kenyans have halved the cost of visas. And the French have reduced VAT on restaurant meals.

This is not a position of the British government for care - quite the opposite. In April, the Treasury announced plans to increase air passenger rights by up to 112 percent in November.

This means an additional £ 600 in taxes for a family of four flights to the Caribbean.

Hammering fliers is an ingrained tax raising revenue by both airports and government - buy a £250 flight to New York today and 80 per cent of that will be taxes and charges.

Now, just as airlines and airports report plunging passenger figures this year, the government has decided to raise passport fees again, to £77.50.

It represents an 85 per cent increase within four years - at a time when travel is collapsing.

Stansted airport saw passenger numbers fall by 20 per cent over the Spring Bank Holiday compared to last year. The number of trips abroad taken by Britons also fell in March for the fifth consecutive month.

In November, 2008 - traditionally the second quietest month for travel, after December - some 5.49m trips were taken abroad. But by March, when travel picks up, the figure had slumped to 5.01m.

In the first three months of 2009, 14 per cent fewer trips were taken compared to the same period last year. The big holiday firms, Tui and Thomas Cook, both confirmed sales are down by 12-14 per cent this year.

So this year will see the biggest-ever fall in travel from the UK.

But, in a totally-non-ironic way, the government and Identity and Passport Service is blaming the slump in demand for travel as the reason for hiking fares from September 3 to an eye-watering £77.50 (up from £72) for an adult and £49 for a child (£46). Renewal fee hikes are even steeper.

To quote Frankie Howard, my flabber has never been so gastered.

Look: when demand for travel falls, airlines lose a fortune. Tour operators, villa owners and guesthouses have to sell cheap, market furiously and still see a downturn. People don't travel as much because they can't afford to.

Yet the government uses the severe downturn to actually raise prices. It really is extraordinary.

The Identity and Passport Service says it has to maintain security and a high, professional service. It also says that it is the first rise since October, 2007.