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World Travel & Tourism Council
WTTC position on taxing of air travel for international aid
Tuesday, September 06, 2005
The position of WTTC regarding the recent announcement by the French President, Jacques Chirac, that from next year in France a tax will be levied on all airline tickets in order to raise development funds for Africa is as follows:

There are several channels through which aid can be raised - at state level, EU level, individual level and through the private sector. All these sectors already contribute in a considerable way and in a variety of different forms to overseas aid and development. In particular, after the Tsunami, the response on the part of individuals all over the world was phenomenal.

It seems inappropriate to us that one specific industry sector, aviation, should be the vehicle for such funds to be collected. Furthermore, to use an industry sector which is already facing considerable challenges - in particular those posed by the rising price of fuel - creates an extra burden.

Aviation is a vital component of the Travel & Tourism industry - one of the world`s largest industries. Travel & Tourism is expected to contribute more than 10 per cent of global GDP and account for more than 220 million jobs in 2005. It is a global industry whose benefits reach all sectors of society and provides a potential form of income for even the most remote areas.

Therefore, encouraging people to travel has a beneficial effect on the economies of developing nations, not only in Africa but in Asia, Latin America and virtually every country in the world. As such, governments should encourage people to travel rather than taxing them for doing so.
Theodore Koumelis - Tuesday, September 06, 2005
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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