Concerted action by the government is needed to ensure Britain does not head into a deep recession, said president of the CBI and chairman of British Airways Martin Broughton.
Speaking to delegates at the ABTA Convention in Gran Canaria this morning he said it is important the UK government acts in conjunction with the US and European governments to overcome the current downturn.
“Don´t lets talk ourselves into that recession” he told delegates. “Evidence from CBI members is the sky hasn´t fallen in on the economy. The slowdown is hurting but it needn´t be in the scale of the recessions of the early 90s.”
However, he accused banks of being “self-destructive” by refusing to lend money to each other in the current climate. Unless they change the way they operate, he said, this will affect the amount of credit available to good businesses.
He also issued advice to the industry encouraging agents and operators to have a distinctive brand position, as in the current climate consumers feel more secure with brands they know.
“Innovative business are more likely to swing out of the downturn in good shape,” he added.
More news from the ABTA Travel Convention 2008.