Turks and Caicos Islands

Band, and
approximate
distance in miles
from
Table 4.2.6: UK air passenger duty as of November 1, 2009
In the lowest class of travel (reduced
rate)
From November 1,
2009 to October
31, 2010
From November 1,
2010
In other than the lowest class of travel *
(Standard rate)
From November 1,
2009 to October
31, 2010
From November 1,
2010
Band A (0-2,000) £11 £12 £22 £24
Band B (2,001-
4,000) £45 £60 £90 £120
Band C (4,001-
£50 £75 £100 £150
6,000)
Band D (over 6,000) £55 £85 £110 £170
*
The reduced rates apply where the passengers are carried in the lowest class of travel on any flight unless the seat
pitch exceeds 1.016 metres (40 inches), in which case, whether there is one or more than one class of travel the
standard rates apply.
(Source: HM Revenue & Customs, 2008)
Scientifically, there is general consensus that a “serious” climate policy approach will be paramount in the
transformation of tourism towards becoming climatically sustainable, as significant technological
innovation and behavioural change will demand strong regulatory environments (e.g. Barr et al., 2010;
Bows et al., 2009; Hickman and Banister, 2007; see also Giddens, 2009). As outlined by Scott et al. (2010),
“serious” would include the endorsement of national and international mitigation policies by tourism
stakeholders, a global closed emission trading scheme for aviation and shipping, the introduction of
significant and constantly rising carbon taxes on fossil fuels, incentives for low-carbon technologies and
transport infrastructure, and, ultimately, the development of a vision for a fundamentally different global
tourism economy.
While this would demand a rather radical change from current business models in tourism, all of these
aspects of a low-carbon tourism system are principally embraced by business organisations. For instance,
the World Economic Forum (WEF, 2009) suggests as mechanisms to achieve emission reductions i) a carbon
tax on non-renewable fuels, ii) economic incentives for low-carbon technologies, iii) a cap-and-trade system
for developing and developed countries, and iv) the further development of carbon trading markets.
Furthermore, evidence from countries seeking to implement low-carbon policies suggests that the tourism
businesses themselves also call for the implementation of legislation to curb emissions, a result of the wish
for “rules for all”, with pro-climate oriented businesses demanding regulation and the introduction of
market-based instruments to reduce emissions (cf. Ernst & Young, 2010; PricewaterhouseCoopers, 2010).
There is consequently growing consensus among business leaders and policy makers that emissions of
greenhouse gases represent a market failure. The absence of a price on pollution encourages pollution,
prevents innovation, and creates a market situation where there is little incentive to innovate (OECD,
2010). While governments have a wide range of environmental policy tools at their disposal to address this
problem, including regulatory instruments, market-based instruments, agreements, subsidies, or
information campaigns, the fairest and most efficient way of reducing emissions is increasingly seen in
higher fuel prices, i.e. the introduction of a tax on fuel or emissions (e.g. Sterner, 2007; Mayor and Tol,
2007, 2008, 2009, 2010a,b; see also OECD, 2009 and 2010; WEF, 2009; PricewaterhouseCoopers, 2010).
Compared to other environmental instruments, such as regulations concerning emission intensities
or technology prescriptions, environmentally related taxation encourages both the lowest cost
abatement across polluters and provides incentives for abatement at each unit of pollution. These
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