Above: Grenada (CJ Photo)

By the Caribbean Journal staff

Grenada is welcoming the decision by Virgin Atlantic to absorb the increase in the cost of the British Air Passenger duty for passengers, according to an official.

“We are indeed pleased with this bold step on the part of Virgin,” said Richard Simon, press secretary to Grenadian Prime Minister Tillman Thomas. “The Airline and its President Sir Richard have proven to be partners in the development of our region.”

Virgin announced the move this week in a letter by CEO Steve Ridgeway.

“The position of Virgin is consistent with our call for the UK to review the impact of the tax on one of the most important industries to Caribbean countries,” Simon said. “Tourism is the largest contributor to some of our economies and we welcome the assistance of Sir Richard and Virgin Atlantic in bringing additional relief to our countries and attention to this issue.”

Ridgway called the duty a “tax on tourism and trade” in his letter to UK Chancellor George Osborne.

The duty was a major point of discussion at the UK-Caribbean Forum, which was held in Grenada in January.