The Scottish government has allocated £3.5 million in support funding to outbound travel agents as part of its stage three recovery budget.
The funding was announced by the Scottish National Party’s finance secretary Kate Forbes on Thursday, with a further £7.5 million allocated to inbound operators and £3 set aside to improve footfall in city centres.
Jacqueline Dobson, president of Barrhead Travel, said: “After months of lobbying the Scottish government, today’s confirmation that financial grants will finally be forthcoming for the outbound travel industry is excellent news.
“It is a timely announcement: while travel businesses are enjoying high demand for holidays, the industry is still feeling the pain from the last two years and will continue to do so until the actual departure volume mirrors close to pre-pandemic levels.”
Dobson added: “For many travel businesses – particularly independent agents who form the backbone of local high streets – these grants will give much-needed breathing space and allow them to turn their attention to working towards a strong summer recovery.
“Sunnier days are coming – but the industry must retain lines of communication with local government because there are still many challenges to overcome this year. The flaws in the distribution of the ARG funding, for example, is concerning and we will continue to advocate for change and fair financial support.”
SPAA president Mike Tibbert said: “Travel agents in Scotland are greatly relieved today.
“[The SPAA] today held a meeting with the minister for business, trade, tourism and enterprise Ivan McKee, as part of our ongoing efforts to gain sectoral support for our members.
“This was a constructive meeting, and the minister took on board the points we were making about the negative income which had faced travel agents due to the financial model for outbound travel. Mr McKee understood the pressures which these businesses have faced.”
He added: “We are delighted that, after two years of fighting the corner of travel agents and the travel industry in Scotland, our efforts have paid off with the announcement of £3.5 million in direct business support for travel agents.
“The funding will assist businesses to recover from two years of negative income and to plan for a more secure future for their business. We also hope that this positive message from the Scottish government will reach skilled travel professionals, who have been leaving the industry due to the challenges the sector has faced and encourage them to return.
“After the travel turmoil of the last two years, the travelling public will need the advice and knowledge of travel agents more than ever.”