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Thu, March 1, 2007 : Last updated 14:31 pm (Thai local time)



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Home > Business > IATA opposes 'misuse' of airport tax





IATA opposes 'misuse' of airport tax

The International Air Transport Association (IATA) opposes the proposed use of the airport tax to help foreign tourists hurt by natural disasters or violence.

"This is not consistent with the International Civil Aviation Organisation [ICAO] principle that taxes on aviation should generate funds solely for aviation purposes," Albert Joeng, manager of Asia-Pacific corporate communications, said last week. ICAO insists that all charges be based on sound economic principles and reached through consultations with airlines, he said. ICAO also requires transparency and cost-relatedness in the charges.

IATA also questioned why air transport had been targeted as the vehicle for collecting such funds. Air transport is not a luxury item only enjoyed by a privileged few but the only form of global mass transit, it said, and

over two billion people, most of whom are not wealthy, travel by air each year.

"A better way of promoting tourism to Thailand is to consider steps to reduce the cost of travel for passengers and the financial burden on airlines," Joeng said.

Tourism Minister Suvit Yodmani recently suggested setting up a fund to assist travellers injured or killed by natural disasters or violence on their visit here.

The ministry plans to ask Airports of Thailand (AOT) to provide financial support to set up the fund. The ministry is asking for one per cent of revenue from AOT's airport tax.

AOT received Bt6 billion in departure taxes from 12 million international tourists last year and is expected to collect Bt10 billion from more than 14 million visitors this year.

AOT recently raised its passenger service charge from Bt500 to Bt700 per outbound flight to boost revenues.

Personal accidents are now more frequent because more tourists are travelling individually, instead of coming with a group as in the past.

Suchat Sritama

The Nation








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