Abta is highlighting what the industry needs from government to recover from the pandemic and get through the cost of living crisis.
The travel association has written to new chancellor Jeremy Hunt to state the case for the sector ahead of the October 31 fiscal statement.
In the letter to the chancellor, Abta calls on the government to:
- Extend existing retail-based business rates support beyond the end of the financial year April 2023.
- Provide business support to travel businesses that are not based in retail premises, such as tour operators, who have been unable to benefit from existing support mechanisms.
- Work closely with the British Business Bank and lenders to encourage a sympathetic approach to businesses that are struggling to repay Covid debts over the coming months.
- Freeze Air Passenger Duty in the upcoming fiscal statement for the remainder of the current Parliamentary term.
The letter says that while many of the challenges facing the UK are economy-wide in nature, including rising energy costs, not all sectors of the economy are entering the crisis from the same starting point.
Businesses in the travel sector are only just emerging from considerable trading restrictions that were in place for two years from March 2020, and many travel firms have been unable to recover their financial positions to the same level as other areas of the UK economy.
It is “vitally important” that sustainable longer-term solutions are found that enable businesses to trade their way through the crisis as the government is on the hook for 80% of loans made to these companies under Covid loan schemes, Abta points out.
“It is also critically important that the case of the travel industry is examined carefully within the review of energy bill relief scheme, which will decide upon future targeting of energy support,” the association added.
Abta has submitted evidence through the Department of Culture Media and Sport and encouraged many businesses to do so directly.
Chief executive Mark Tanzer said: “The new chancellor must take the opportunity to use the full Budget statement later this month to establish a plan to help businesses continue to recover from the pandemic and facilitate their growth.
“The outbound travel sector is a major contributor to the UK economy, generating £49 billion in GVA and supporting 720,000 jobs. Our latest research forecasts that outbound travel has the potential to grow 15% by 2027 but that is dependent on the right support and framework from government.
“There are steps that government can take help to support the sector, in recognition of the delayed recovery from the pandemic and current cost of living crisis, and we urge the chancellor to use the Budget to take this action.
“Allowing businesses to flounder would be costly for the government and sacrifices the growth potential for the industry and the economy.”