Abta and UKinbound have unveiled a five-point plan for the chancellor to support the travel industry’s recovery from the pandemic ahead of next week’s Autumn Statement.
The trade bodies said the upcoming fiscal statement will be a “pivotal moment” for the UK’s travel industry and urged Jeremy Hunt to “strike the right balance” between tax and policy framework to ensure businesses can build on a successful summer.
The associations said the travel industry is trailing other sectors when it comes to its recovery and has entered the cost-of-living crisis at a “very different starting point to the rest of the UK economy” as restrictions on international travel were lifted later than those imposed on other sectors, such as retail and hospitality.
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Abta and UKinbound have revealed their five-point plan to support the travel industry’s recovery which they will present to Hunt before the Autumn Statement on November 17.
The trade bodies will advise the chancellor to:
- Freeze Air Passenger Duty for the remainder of the current parliamentary term
- Extend energy and business rate support for travel businesses beyond March 2023
- Work with the British Business Bank to encourage lenders to adopt a sympathetic view to travel businesses requiring more time to repay pandemic-related debts
- Reinstate the VAT reclaim scheme to make the UK a global shopping destination, boosting arrivals and tourist spending in the UK economy
- Create a digitalised youth group visa application process to reverse the decline in youth group travel that has resulted from the end of EU ID card acceptance within the UK
Chief executive Mark Tanzer (pictured) said: “The Autumn Statement will be a pivotal moment for the UK’s international travel industry and will shape its future ability to grow over the next few years.
“We need the chancellor to strike the right balance with the upcoming statement.
“Getting the right tax and policy framework would see travel businesses continue to build on a decent summer, paving the way for strong recovery which would support jobs, contributions to the Exchequer and the UK’s wider economic recovery.
“Get it wrong and we risk going backwards, facing similar challenges to those of the pandemic but made worse by the significant level of debt still outstanding.
“Our five point plan offers a sensible and pragmatic way for the government to support the industry in recognition of the valuable role international travel plays in the UK economy.”
Joss Croft, chief executive of UKinbound, said: “Speaking with a united voice makes the UK’s international tourism industry infinitely stronger.
“Inbound, outbound and domestic tourism businesses across the country continue to walk on a tightrope as they navigate recovery with rising costs and Covid-19 loan repayments, while striving to maintain high customers standards and service.
“The policy outlined by our two associations would bring a level of stability to businesses and directly impact their ability to push forward with growth aims and objectives.
“The economic opportunities presented by tourism are clearly evident but government has to act now if it wants to capitalise on them and reap the benefits for the UK economy in 2023 and beyond.”