Air Passenger Duty Increases Costs Of Holidays | Prepaid365

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10 April 2012

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A rise in Air Passenger Duty (APD) on April 1 has meant an increase in the cost of holidays to a number of destinations, putting a further strain on family finances.

Although the rise may deter tourists from making their annual trip abroad, the news that a holiday to Malta has increased by just 0.08% (or just £1) is sure to put a smile back on holidaymakers’ faces.

In contrast, the study conducted by M&S Money of ten commonwealth destinations found that family holiday budgets will be particularly stretched in the following two countries: Singapore (£2,662) and New Zealand (£2,206).

Those looking for a more wallet friendly seven-day break, inclusive of flights, should head to Cyprus (£1,199). This is closely followed by Malta (£1,230) and Kenya (£1,435).

Although holidays in East Africa have increased by a figure of 13.65% over the last year, Kenya still proved the best value destination at £988.

The costs of a holiday in New Zealand and Barbados also shot up by over 8%, while South Africa, Canada and Cyprus only increased by a more marginal 1.5%.

Jane Lawson, head of travel money at M&S Money, said: “In the Queen’s Diamond Jubilee year many people will be tempted to follow in the footsteps of the Royal Family and see what the Commonwealth has to offer.

“Luckily, favourable exchange rates and lower inflation mean many countries in the Commonwealth offer great value for money.”

The rise in APD was met with dismay by travel body ABTA who fear that it may have a negative impact on world tourism:

“We expressed great concern that the APD bands based on the distance from London to the capital city are illogical from an environmental perspective and would put off travellers to destinations such as the Caribbean and Kenya, whose economies are extremely dependent upon tourism. APD also has an impact upon incoming visitors to the UK which might make them go elsewhere and not visit the UK at all.”

If you are heading on a family holiday abroad this summer you may want to use prepaid travel cards to save on the costs of continually exchanging your foreign currency.

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