The International Air Transport Association (IATA) has urged the African Union (AU) to reject proposals for new taxes on air travellers and hotel guests which, if implemented, would threaten the livelihoods of millions of African citizens and negatively impact the economies of African nations, according to the industry body.
IATA’s director general and chief executive officer, Tony Tyler, likens such taxes to “killing the goose that lays the golden egg,” warning that eight million jobs in Africa depend on aviation, an industry that also delivers an $80.5 billion contribution to the African economy.
“Aviation brings business—including tourism—to the continent. And the same aircraft carry African goods to global markets. Making tourism and trade more costly may promise a narrow, short term gain for the AU treasury—but experience has shown that such taxes ultimately result in a vicious downward spiral ending in long-term pain across the economy,” he said.
Belgium, Ireland and Netherlands, to name only a few are examples of countries that have tried to go down this road in the past and that have been forced to reverse themselves once they saw the impact of such taxes on their economies and societies.
Across the globe more than 51 per cent of tourists arrive by air, a proportion that is even higher for Africa. “Africa is already among the most expensive places for air travel and trade. Additional taxes will simply push visitors to alternative destinations. If demand falls, connectivity will be imperiled, with wider consequences for Africa’s economy,” explained Tyler.
He said that instead of treating passengers as “cash-cows”, African Union governments should implement policies that encourage greater intra-African air connectivity, and facilitate the construction of world-class aviation infrastructure that will deliver sustainable economic and social benefits.
“Africa holds enormous potential for aviation to grow as a force for good. Where government policies have supported the healthy development of aviation it has changed people’s lives for the better, helping to lift many from poverty. Rather than killing the golden goose, the African Union should focus on an agenda for growth and prosperity, which a vibrant air transport sector can help to deliver,” said Tyler.
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