The £1 billion support package for the hospitality and leisure sectors should “increase the possibility” of retail travel agencies being able to access ARG grants, according to Abta.
The association is pushing for guidance from the government for local councils, which distribute the Additional Restrictions Grants (ARGs), to recommend travel businesses are prioritised for support.
The ARG fund was boosted by £102 million on Tuesday, when Rishi Sunak separately announced £1 billion of financial aid specifically for the hospitality and leisure sectors. The boost is in addition to the £250 million remaining in the pot, meaning more than £350 million is available to claim for. But the sector believes the boosted ARG pot “will not go far enough” to support travel businesses.
While it is yet to be confirmed that travel agencies can or cannot apply for a share of the £1 billion support package under the ‘leisure’ category, Abta says it has had reassurances from government that those who receive funding will not be recommended for ARGs as well.
However, retail travel agents have had varying levels of success when claiming for ARGs, with some councils giving them grants, others not – and some businesses reporting being offered ‘laughable’ sums. And the Advantage Travel Partnership consortium said it does not expect the hospitality package to make ARG applications easier for travel firms.
An Abta spokesperson told Travel Weekly: “Abta is encouraging all eligible members to apply for the Additional Restrictions Grant (ARG) and the new pot of £102m, which the government has confirmed is open to travel agents through their local authority until March 2022.
“The full guidance on how the £102 million top-up will be allocated is yet to be published, but the government has indicated that the leisure and hospitality companies that are directly eligible for the funding announced [on Tuesday] will not be recommended as recipients for the additional ARG funding, which should be allocated to businesses outside of those schemes.
“So, while travel companies will likely be competing with some other businesses, for example, other retail businesses including personal care (hairdressers, salons etc.), this steer from government should increase the possibility of travel businesses obtaining these funds.
“Abta is pushing for the guidance to local authorities to contain a recommendation that travel businesses should continue to be supported as a priority.”
Abta is supporting its members with applications for ARGs. More information is available here.
Julia Lo Bue-Said, chief executive of the Advantage Travel Partnership, does not expect agencies to have any more success than in previous ARG applications “unless there’s a direct mandate from the government” and expects local authorities to “share the funding as they see fit”.
Previously, about 50% of Advantage members were successful in applying for ARGs, but Lo Bue-Said expects it will be “likely to be more difficult” to get access to ARG grants this time round.
“It’s a smaller pot and members will be competing with other businesses for funding,” she said, adding: “We don’t expect local authorities will look more favourably at travel companies.”