Abta and inbound association UKinbound launched a report emphasising the huge economic impact of international travel today as the industry looks to engage with the new government.
The report, International Travel: Powering the UK Economy, estimates the direct impact of outbound and inbound travel on UK GDP at £44 billion and total gross value-added (GVA) impact at £80 billion.
GVA expresses the value of services after deducting costs.
The report notes the sectors channel more than £13 billion a year to the Treasury in taxes and generate £84 billion in travel-related spending across the UK.
More: Comment: New Abta and UKinbound report shows value of sector to UK economy
Crucially, the report includes a new online database displaying the economic impact of the sectors not just by region but by constituency, meaning the data can be used in lobbying individual MPs.
Abta director of public affairs Luke Petherbridge said the report aims “to remind policymakers of how important international travel is.
“Outbound travel is larger than the transport equipment manufacturers’ sector – aerospace, motor vehicles and rail – and inbound travel is the second-largest service export.”
He said: “Not all policymakers acknowledge the importance of international travel. This reminds them of its significance.”
Petherbridge noted: “We’ve produced three reports on the outbound value to the economy. It’s the right time to include inbound. People will be able to use the data on the impact at constituency level when they speak to MPs.”
UKinbound chief executive Joss Croft said: “We’ve been able to present a full picture and a single voice.
“International travel is hugely important. It has the potential to outperform the UK economy. Having the data down to constituency level allows it to be understood at the level of individual MPs.”
He added: “We have a lot of new ministers and secretaries of state. There is an opportunity to use this to educate them.”
The report estimates the total GVA of outbound travel as £49 billion and inbound at £31 billion, with the sectors together accounting for 1.5 million jobs, 4.6% of the UK total, and more than 700,000 of these directly employed.
It notes growth in both sectors outpaced UK economic growth of 45% in the decade to 2019, with spending on outbound travel rising 82% and inbound up 55%.
And the report forecasts growth in international travel will – “with the right policy levers” – outstrip UK growth in the next five years, at 20% for inbound travel and 15% for outbound compared with 10.3% growth in UK GDP.
The associations hailed the research as “the most comprehensive and detailed piece of analysis in this area to date”.
They urged the government to “recognise the valuable contribution international travel makes to the economy and the important role it will play in driving the UK’s wider economic recovery and growth”.
Mark Tanzer, Abta chief executive, said: “At a time when the industry is experiencing serious challenges, with rising energy costs and consumers facing a cost-of-living squeeze, it is vital policymakers recognise the critical role international travel plays in the UK economy.”
Abta and UKinbound plan to share the report with ministers and government officials, MPs and representatives of the devolved administrations.
Petherbridge said Abta would be demanding the government address the immediate challenges not only by extending business rates support for retailers beyond the end of March but also by extending support to tour operators.
The association will also be asking the government to encourage banks to look sympathetically at indebted businesses struggling to repay loans and calling for a freeze in Air Passenger Duty.
The forecasts and figures were produced by consultancy York Aviation. The report is available here .
More: Comment: New Abta and UKinbound report shows value of sector to UK economy