Holidaying in Germany is likely to become more expensive for families due to the country introducing an increased passenger tax, the International Air Transport Association (IATA) has warned.
The German Government increased its taxes on flying by 19% this week; adding €15.53-€70.83 per passenger, depending on the route.
IATA has slammed the move, saying it will make Germany less competitive in key economic areas such as exports, tourism, and jobs.
It will further affect Germany’s air transport recovery from the pandemic, which is one of the slowest in the EU, IATA said.
“Germany’s international passenger numbers, for example, are still 20% below pre-pandemic levels,” it said.
“When Germany’s economic performance is anemic at best, denting its competitiveness with more taxes on aviation is policy madness. The government should be prioritising measures to improve Germany’s competitive position and encouraging trade and travel. Instead, they have gone for a short-term cash-grab which can only damage the economy’s long-term growth,” said Willie Walsh, IATA’s Director General.
“The German government appears to have an unhealthy obsession with aviation taxes. On top of increasing the passenger tax, it is also in favour of a European jet fuel tax which will make it even more expensive to do business in Germany or for families to go on holiday.“