IATA calls on African Union to reject air tax proposals

The International Air Transport Association (IATA) today urged the African Union (AU) to reject proposals for new taxes on air travelers and hotel guests. If implemented, the taxes would threaten the livelihoods of millions of African citizens and negatively impact the economies of African nations, the organisation said.

“The proposed tax can be likened to killing the goose that lays the golden eggs. 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,” said Tony Tyler, IATA’s Director General and CEO. “Just look at the experience of Belgium, Ireland and Netherlands, to name only a few, 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.”

Globally more than 51% 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. 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,” said Tyler.

“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. “IATA and its member airlines stand ready to work with the AU and its member states to ensure a beneficial outcome for all.”