WILLEMSTAD – The Dutch Caribbean Cooperation of Airports (DCCA) has raised serious concerns about the Dutch government's plan to increase air travel taxes on long-haul flights. In a formal letter to Dutch Finance Minister Eelco Heinen, the DCCA argues that the proposed tax hike would disproportionately affect the Caribbean territories within the Kingdom of the Netherlands, with significant economic and social consequences.
Unfair Burden on Caribbean Territories
The DCCA, representing the six Caribbean airports in the Kingdom, warns that the increased air travel tax would create an unfair financial burden on the islands, which are already at a geographic disadvantage.
“A substantial increase in flight costs could lead to reduced travel between the Netherlands and the islands, negatively impacting tourism, business, and family connections,” the DCCA stated. “This policy does not take into account the unique circumstances of the Caribbean part of the Kingdom.”
Negative Impact on Economic Self-Sufficiency
The Dutch government has emphasized the importance of the Caribbean territories becoming more financially self-sufficient. However, the DCCA warns that a higher air travel tax would have the opposite effect by reducing economic inflows to the islands, which rely heavily on trade and tourism linked to the Netherlands.
“With fewer flights and higher costs, local businesses will suffer, and economic growth will be stifled,” the letter states. “This directly contradicts the goal of increasing self-reliance.”
Cumulative Effect of Aviation Policies
The DCCA also criticizes the lack of a comprehensive assessment of the combined impact of Dutch, European, and international aviation policies.
Several existing measures are already driving up costs for airlines and passengers, including the mandatory use of Sustainable Aviation Fuel, the international CORSIA carbon offset program, reductions in Schiphol Airport’s capacity, and increased airport fees.
“The addition of a higher long-haul tax will only worsen these challenges, further straining the economic health of the Caribbean islands,” the DCCA warns.
Threat to Sustainability and Connectivity
The DCCA has been actively working to promote more sustainable aviation and improved connectivity for the Caribbean region. However, the organization argues that higher ticket prices could jeopardize these efforts by discouraging investments and making air travel less accessible.
“Increasing travel costs will make it harder for Caribbean airports to implement sustainability initiatives and improve connectivity with the rest of the Kingdom,” the letter states.
Call for Exemption or Reduced Tax Rates
The DCCA is urging the Dutch government to reconsider the tax proposal and either grant an exemption for flights to the Caribbean part of the Kingdom or introduce a significantly reduced tax rate.
The organization points to France as an example, where a special tax rate of just €2.16 was introduced for flights to French overseas territories in recognition of their unique status.
“The Netherlands should follow France’s example and acknowledge the economic and social importance of affordable air travel between the European and Caribbean parts of the Kingdom,” the DCCA argues.
Legislative Solution Proposed
To address this issue, the DCCA proposes enacting a Kingdom Act to define tax policies for intra-Kingdom flights, ensuring that flights between the Netherlands and its Caribbean territories are either exempt from the tax or subject to a lower rate. Alternatively, the organization suggests that Dutch nationals traveling to the Caribbean should be exempt from the long-haul tax.
Comprehensive Impact Study in the Works
Beyond the air travel tax, the DCCA plans to conduct a broader study on the overall impact of Dutch aviation policies on the Caribbean part of the Kingdom. This study will be shared with stakeholders in both the Netherlands and the Caribbean territories to ensure informed decision-making in future policy discussions.
Urgent Appeal to the Dutch Government
The DCCA calls on the Dutch government to carefully consider the unique challenges faced by the Caribbean territories.
“We need policies that foster economic stability, sustainable development, and stronger connectivity, rather than measures that create additional barriers for the islands,” the organization concludes.
With the Dutch government currently reviewing the proposed tax policy, the DCCA hopes its concerns will be taken seriously to avoid unintended harm to the Caribbean part of the Kingdom.
