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The increase in air passenger duty (APD) announced in yesterday's pre-Budget report has been widely criticised in the British travel industry, with airlines and associations warning that it could have a number of severe consequences.

According to the Association of British Travel Agents (Abta), APD is considered to be inefficient with regards to the environment and penalises airlines that operate full planes.

Travellers who will be hardest hit by the increase in tax are those flying from British airports to long-haul destinations.

Abta said it is 'particularly concerned' that people will be discouraged from travelling to destinations such as the Caribbean and Kenya, whose economies rely on tourism, particularly from the UK.

Andy Cooper, the association's head of development, said: 'The travel sector has not yet felt the full effect of the recession, but travel lags behind the rest of the economy by about six months and we are facing an extremely challenging 2009.

'The money being raised from APD will not be hypothecated to go to environmental causes, but will just end up in general government coffers, despite being grouped under the heading on how the government will deliver on environmental goals.'

The Air Transport Association of America also expressed its opposition to the tax increase, describing it as 'a revenue-raiser for the government under the guise of environmental protection'.

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