The travel industry needs tailored support rather than business recovery schemes, the boss of Kuoni has said.
Derek Jones, chief executive of parent company DER Touristik UK, reflected a lukewarm trade response to chancellor Rishi Sunak’s Jobs Support Scheme as part of the government’s winter economy plan.
“All jobs in the sector are viable jobs in the long term but with no meaningful revenue right now paying a minimum of 55% of salaries is simply unaffordable for most businesses,” he said.
“Most work that still needs doing is ‘revenue negative’ – mostly refunds. Paying staff more for the hours they work (55% of pay for 33% of hours) is less economic than keeping fewer staff on full salaries.”
Jones added on his Twitter feed: “Support needs to be tailored to the sector.
“Until we see universal testing or a vaccine there will be no recovery.
“Schemes that are designed for recovering businesses simply don’t work in travel right now.”
Meanwhile, Advantage Travel Partnership chief executive Juia Lo Bue-Said tweeted: “Hospitality sectir hitting the headlines but tjhey can still trade.
“Overseas travel over 1m jobs in UK (excluding domestic tourism); no trade at all for 6 months. A year’s worth of income lost. Who has been disproptionately affected?”
Jeanne Lally, joint managing director of Travel Bureau, said: “Disappointed that Rishi Sunak did not extend sector specific help. Travel has viable jobs. I’d like more detail on what is classed as viable.”
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