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Air Passenger Duty and Outbound Tourism Demand from the United Kingdom.

Seetaram, N., Song, H. and Page, S.J., 2014. Air Passenger Duty and Outbound Tourism Demand from the United Kingdom. Journal of Travel Research, 53 (4), 476-487.

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Air Passenger Duty and UK Tourism_revise June2013.pdf - Submitted Version


DOI: 10.1177/0047287513500389


On November 1, 1994 an Air Passenger Duty (APD) was introduced in the United Kingdom, and since, this tax continues to be controversial. This article examines the effect of the ADP on UK outbound tourism demand for 10 international destinations. An autoregressive distributed lag model is developed and income, price, and tax elasticities are estimated. The income and price elasticities obtained, ranged between 0.36 and 4.11 and −0.05 and −2.02, respectively. The estimated tax elasticities suggest that the implementation of APD had a negative effect on UK outbound travel for five destinations and the demand is inelastic to changes in taxes although the magnitudes vary across destinations. The general message is that although the stated objective of APD is to reduce travel and associated carbon emissions, the effectiveness of APD, however, has been marginal; travelers are prepared to pay more in the main to maintain their demand.

Item Type:Article
Uncontrolled Keywords:air passenger duty tourism taxes outbound tourism demand elasticities
Group:Bournemouth University Business School
ID Code:22553
Deposited By: Symplectic RT2
Deposited On:30 Sep 2015 15:29
Last Modified:14 Mar 2022 13:53

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