TRAVELLERS and leaders of the UK travel industry have been angered by the Government's failure to scrap plans for a rise in Air Passenger Duty.

The Chancellor Alistair Darling made no reference in the Budget to the travel tax, which is due to increase in November and again in 2010.

Airlines, travel agents, the Association of British Travel Agents (ABTA) and other industry associations had been campaigning for the Chancellor to scrap the tax altogether - or at least put the second phase of increases on hold.

However, despite evidence to show the negative impact on the tourism industry, the Government has refused to countenance a change of heart.

ABTA's CEO Mark Tanzer, said: "This unfair tax already costs air travellers from the UK £2 billion and covers its environmental costs.

"This holiday tax represents a heavy and growing burden on families at a time when they are being forced to reconsider whether they can afford to take a well-earned break.

"As one of the few successful sectors in the UK economy, the Government has targeted the travel industry to plunder, without regard to the damaging impact to jobs." He said ABTA will continue to challenge the increases, and its anomalies.

"The rise in APD to destinations such as the Caribbean, dependent on tourism, will be as much as 87 per cent, equating to a tax bill of £600 for a family of four travelling to the Caribbean in premium economy in 2010 compared with today's £160. "A survey by one of the UK's largest tour operators shows that 22 per cent of passengers travelling to the Caribbean have a household income of less than £25,000."

Toby Nicol, easyJet's Communications Director said: "The Chancellor of the Exchequer has missed the opportunity to give air passengers a much-deserved shot in the arm by refusing to ditch his planned £1 billion raid on the airline industry over the next two years. In the Budget he should have waived the planned increases in order to help an industry which will be at the forefront of dragging the economy out of recession."

And Mike Rutter, Flybe's Chief Commercial Officer, said: "The Government's own figures show that aviation already pays its own way. By slapping another tax on a British success story like aviation, the Chancellor runs the risk of endangering a recovery that could be led by aviation."

And Co-operative Travel Managing Director Mike Greenacre said it was scandalous that APD has gone from zero to its existing level in such a short period of time.

"Whilst we accept that the industry has to pay its share of tax on fuel, the impact of this draconian increase could be catastrophic."

For flights to Europe, APD will go up by 10 per cent to £11 and to £12 in 2010.

For long-haul visitors travelling over 6,000 miles (including Australia, New Zealand and Malaysia, three key inbound markets), taxes will rise from £40 to £85 in 2010