Abta chief Mark Tanzer marks the first anniversary of Covid travel restrictions’ removal
Tomorrow, Saturday March 18, will mark one year since the UK lifted its remaining Covid international travel restrictions.
Throughout the pandemic, Abta and industry colleagues stressed to government that any travel restrictions should be proportionate, evidenced-based and not in place a minute longer than necessary. So it was good to see the government respond to our calls on this matter by making the UK among the first countries to end Covid travel requirements.
We’ve clearly seen from the first year of restriction-free travel that the UK’s love affair with foreign holidays is well and truly back.
New data, which Abta will publish on Saturday to coincide with the anniversary, finds the demand for holidays has returned to pre-pandemic levels.
Many people have enjoyed a break on foreign shores over the past 12 months and, as we’ve seen from the peak sales period, plan to do so again this year.
This is testament to the hard work of our travel agent and tour operator members, who have supported customers to help them feel confident to travel once again, reminding them of the service and value available when booking with a travel professional.
But the return to travel has not been without challenges, and many still remain.
The day-to-day job of Abta members has become harder. Initially, this was due to dealing with the teething issues of the restart. Now it continues as the sector tackles an exodus of staff both at home and abroad.
This has created a number of difficulties, from the loss of valued contacts and relationships, to not having the people needed in a business to be able to capitalise on the growth in demand for holidays.
The loss of talented employees is one of the biggest, if not the biggest, challenges the sector is trying to overcome. We’ve been supporting members through a range of initiatives, including advertising travel as a great sector in which to develop a career.
It is to be hoped the measures announced by the Chancellor in this week’s Budget will help to increase the talent pool. Of course, this won’t happen immediately.
When making his fiscal statement, the Chancellor noted that growing the economy is one of the top-five priorities for the Prime Minister. The case we’re making to the government, which I will raise with the aviation minister when I see her next week, is that the travel industry is a big driver of UK economic growth.
Abta’s research finds that, with the right tax and policy framework, international travel has the potential to lead the UK’s economic recovery, with the outbound sector expected to grow 15% by 2027, outperforming the wider UK economy.
While bookings have certainly been buoyant over the past 12 months, many companies – in particular, small and medium-sized firms – still have a debt hangover from the pandemic which could stifle their ability to grow.
This financial pressure is something we continue to raise with government, highlighting the need to encourage lenders to adopt a sympathetic approach when it comes to repayment terms for government-backed loans to support the industry’s recovery.
The strong start to the year shows that for now, at least, leisure travel isn’t feeling the same impact around the cost of living as other sectors, with consumers prioritising experiences over other purchases. But clearly the economy is in a fragile position and the squeeze on finances isn’t going away any time soon.
The international travel industry has become adept at navigating through turbulent times, as has been repeatedly demonstrated over the past few years.
The path forward still has obstacles to be overcome, but members can take confidence from the renewed value and importance people place on their holidays.
Mark Tanzer is chief executive of Abta – the Travel Association