Airport operator BAA has warned that increases in air passenger duty (APD) and VAT are likely to undermine the UK's tourism market.

The group said long-haul routes were at risk of travellers using alternative European hubs, rather than London, to avoid the increased APD.

BAA chief executive Colin Matthews said: "Government spending cuts, a sharp increase in air passenger duty and an imminent VAT rise are weakening prospects for inbound tourism and British leisure travel."