Tourism industry representatives are calling for Airport Passenger Duty (APD) at Ronaldsway to be scrapped.

The Isle of Man Travel Trade Association (IoMTTA) has raised concerns with Treasury over the charge, arguing that high APD levels are a key factor in declining air passenger numbers.

The association, which represents local travel agents, says that while global air travel is reaching record highs, Ronaldsway remains 200,000 passenger movements below pre-Covid levels.

Mann Link Travel chairman Brian Kelly, a member of the association, said: ‘We could easily find ourselves 250,000 seats short of pre-Covid numbers at the end of 2025.’

He added that travel industry members believe high fares and APD charges are the main contributors to this decline.

‘Airlines tend to move away from airports when APD regularly exceeds the fares they can charge,’ said Mr Kelly.

‘APD is due to increase again in the UK shortly. Will the Isle of Man follow suit? It’s within the control of our government, not determined by Westminster.’

Ronaldsway Airport (Media Isle of Man)

The association has called on the Manx government to scrap APD in this week’s budget, highlighting that Jersey and Guernsey do not impose the charge, saving passengers at least £26 per flight compared to the Isle of Man.

The IoMTTA warns that continued declines in passenger numbers could lead to a ‘downward spiral,’ with the government potentially increasing APD further to offset the cost of running the airport.

The association argues that scrapping APD would provide significant economic benefits for both residents and businesses.

‘How much is the appeal of the Isle of Man to new businesses and new residents affected by the shrinking air route network?’ Mr Kelly asked.

‘The government may be picking up £3 million in APD annually which goes straight to Treasury coffers, but what is the hit to the wider economy of reduced traffic?’

Tynwald will debate the 2025/26 budget on Tuesday, February 18.