Canada's Airports Welcome Improvements to Aviation Tax Regime

British Columbia move to eliminate provincial jet fuel tax a valuable effort to stimulate international aviation and tourism

OTTAWA, Feb. 23, 2012 /CNW/ - Canada's airports today welcomed the Province of British Columbia's announcement that it will eliminate its tax on jet fuel for international flights effective April 1^st.  The move is expected to stimulate international air capacity and improve travel options for international travellers.

"In a time of economic austerity, provincial and federal governments are grappling with the dual challenges of growing the economy while maintaining fiscal restraint," said CAC Vice Chair Tom Ruth.  "BC's move recognises the importance of Canada's tourism sector to the Canadian economy, the role of aviation for Canada's inbound tourism, and the stimulatory effect of reducing the fiscal burden on our interconnected sectors."

The Canadian Airports Council is a partner with other industry stakeholders in the National Roundtable on Travel and Tourism.  Together with the nation's largest international air carriers and the tourism and hotel sectors, the NRTT is dedicated to improving the fiscal environment for Canada's aviation environment and improving Canada's international standing as a world tourism destination.

"BC's initiative follows the welcome move by the federal Minister of Small Business and Tourism to finalize and unveil a Federal Tourism Strategy - a multi-departmental and intergovernmental commitment to tackle the obstacles to Canada's world competitiveness as a tourism destination," said CAC President Daniel-Robert Gooch.  "Cost is an important element in that equation."

Canada's ranking as a destination for international tourists has fallen from 8^th place in 2000 to 15^th place in 2009.  Over these years, the tax burden on aviation in Canada has gradually increased and the World Economic Forum now ranks Canada's travel sector 106^th in terms of price competitiveness.  In addition to federal airport rent, the federal burden includes the Air Travellers Security Charge, and the Goods and Services Tax/ Harmonized Services Tax.  There is a provincial fuel tax still in place in Ontario and many airports also pay municipal payments in lieu of tax.

About the Canadian Airports Council

The Canadian Airports Council (CAC), a division of Airports Council International-North America, is the voice for Canada's airports community and the Canadian unit of Airports Council International-North America.  Its 45 members represent more than 200 airports, including all of the National Airports System (NAS) airports and most significant municipal airports in every province and territory. Together, CAC members handle virtually all of the nation's air cargo and international passenger traffic and 95% of domestic passenger traffic.  They create in excess of $45 billion in economic activity in the communities they serve.  And more than 200,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.

Daniel-Robert Gooch
President
Canadian Airports Council
[phone] ext 16
[email protected]