I don't like bumping my own threads, but this issue is fundamental to whether or not the airline industry is going to get its way in Westminster. The anti-aviation lobby is well tooled up with its rhetoric about pollution, but they also frequently trot out the line about aviation being "subsidised" to the tune of £10 bn per year. Part of this claim comes from this tourism deficit.
As long as politicians can see the airline industry as a net drain on resources, then they will continue to eek up Air Passenger Duty and resist demands for airport capacity increases. Either we let them do this or we provide evidence to the contrary.
Which is it going to be?