UKinbound has again written to the chancellor, urging him not to abandon the inbound tourism industry, which is on the “cusp of recovery”.
The association asks for furlough for the tourism sector to be extended until the end of April 2022, and the creation of a £45 million Tourism Export Recovery Fund – initially proposed by UKinbound on July 1.
The latest Business Barometer survey of UKinbound member highlights the risks faced by business.
A third don’t expect to survive longer than six months, considering current government support, “putting at risk thousands of jobs”, said the association.
Furthermore, 82% of tour operators have seen their revenue reduce by more than 90% since March 2020.
However, almost half (48%) of members are confident about the coming 12 months, the highest confidence level seen during the pandemic, since an all-time low of 11% in April 2020.
In its letter to the chancellor, the association explained most sectors started trading again in April – but the first meaningful reopening of international travel was August 2, by which time most international tourists had cancelled their summer holidays to the UK.
Inbound tour operators and destination management companies (DMCs) now face the equivalent of a fifth winter in a row, having received virtually no income since March 2020.
Some bookings for autumn are being confirmed but many international visitors are opting for destinations with Covid rules that are easier to understand than those in the UK.
Other barriers to recovery are the inflated price of testing, the type and number of tests, and the fact that many other countries in Europe do not require vaccinated arrivals to take any test, added UKinbound.
Joss Croft, chief executive of UKinbound, said: “Inbound tourism businesses such as tour operators and DMCs face a cliff edge on October 1 when furlough ceases due to the government misconception that these businesses have been in recovery for many months and have large levels of new revenue coming in.
“They’ve lost out on the valuable 2021 summer season and are facing a winter with minimal income. Removing support measures would be absolutely counterintuitive, given the investment government has already made in the industry since the start of the pandemic and the potential for recovery.”
He added: “2022 presents a tremendous global opportunity for the UK as it hosts and celebrates the Commonwealth Games in Birmingham, Festival UK 2022 and the Queen’s Diamond Jubilee.
“These events will bring vast economic, cultural and societal benefits to the country which will play a vital role in the UK’s economic recovery, but they will only be realised if we have a thriving inbound tourism industry in place.”