Barbados visitors get 'free' spending money

The Caribbean island will be providing UK arrivals with vouchers worth up to £128 in an attempt to reverse a 10 per cent decline in visitor numbers following the most recent increase in Air Passenger Duty (APD).

The value of the vouchers will depend on the length of your stay, and they can be redeemed at selected restaurants, hotels, car hire companies, shops and tour firms. They will be issued to holidaymakers who book before September 21, for travel up to December 21, 2013, upon arrival at their hotel.

Under the Barbados Island Inclusive offer, guests who stay at least five nights will receive vouchers worth $150 (£96) per person; those who stay for seven nights or longer will receive $200 (£128).

A spokeswoman for the Barbados Tourism Authority said the scheme was in direct response to a 10.7 per cent dip in UK arrivals during August, compared with the same month in 2012, a trend it blamed on rising APD.

APD is paid by all those flying from a British airport, adding £332 to the cost of a Caribbean holiday for a family of four, or £664 when flying in premium economy, business- or first-class cabins. The tax on flights to the Caribbean has more than doubled since 2009, when a family of four would have had to pay £160, or £320 in premium cabins.

The tax has also been criticised for discriminating against Caribbean nations. The level of APD paid is decided using four “bands”, and by calculating the distance from London to the capital city of the outbound destination. Under the system, the Caribbean falls into Band C, but the United States falls into Band B. This means that anyone flying to California, or even Hawaii, pays less in tax than those visiting the Caribbean.

How tax on flying has soared

Air Passenger Duty paid by a family of four in economy class