New tax 'going well' - airport manager
Airport officials said yesterday they are having some complaints over a “facilities tax” added onto tickets, but say the introduction of the new charging system is going well.
Since April 2, a number of taxes which were previously incorporated into the price of a ticket - but not itemised to customers - and which the airlines then paid to Government, have been brought together in the form of a $4 “facilities tax” paid by passengers.
But during a “transition period” before the introduction date of the tax was finalised, some travellers may have booked tickets issued by the airlines which did not include the $4 facility tax, meaning passengers had to pay the separate fee at Bermuda International Airport.
Lonnie Cress of Warrenton, Virginia, complained in a letter in Tuesday's Royal Gazette about having to pay the charge at the airport, which she said she had not been informed about in travel literature.
Airport acting General Manager Lester Nelson said last night that very shortly, all airline tickets will include the $4 fee, separately itemised on the ticket, meaning passengers will not have to pay the charge at the airport.
He said the new system of charging - which was not a new tax but a “migration” to a new way of paying it - has been widely communicated to the Department of Tourism, tour operators and hotels, but there had still been some complaints during this transition period.
Mr. Nelson said: “Before April 2, passengers could not see the cost of the $4 facilities charge on their tickets. The transition process needs to be managed. We have worked with the hotels, the Tourism Department and the tour operators, but we do hear some complaints loud and clear.”
“There will be a few people caught up in the winds of change, but it has been a very successful undertaking, and as the days go on there will be less tickets which do not have the $4 facilities charge included.
“It will be beneficial to the airlines, beneficial to ourselves, and beneficial to the passengers because it should create an environment where we see lower air fares.”
Now, for example, if an airline charges $300 for a flight from New York, added on top of that will be a $25 Bermuda passenger tax, a $4.25 security fee, the $4 facility charge, and a US fee.
The traveller will see the extra charges itemised, but the airlines can market their fares at a lower level, not including the additional taxes.
Mr. Nelson said he likens the charging structure of car hire companies which can advertise low daily rates, then add separate charges on top of that.
