The outbound travel industry contributes £57bn a year to the UK economy, up 9.6% on pre-pandemic levels, according to new research from ABTA.
ABTA’s latest Outbound Travel Report found the sector’s economic contribution has increased by 9.6% since 2019, while employment has risen by 5.7% meaning outbound travel now supports 865,000 jobs across the UK.
The trade association’s latest report revealed that the North East of England has the highest contribution from outbound travel as a proportion of regional economic activity, at 2.6%, followed by the North West, West Midlands, Yorkshire and the Humber, and East Midlands, all at 2.4%.
London has the highest proportion of jobs linked to outbound travel, at 2.6% of regional employment, followed by the North East, North West, East of England and West Midlands, each at 2.4%.
ABTA is calling on the Government to work with the industry to support further growth, citing challenges including geopolitical instability, rising costs, climate-related disruption and the introduction of the EU’s Entry/Exit System (EES).
With the next Budget approaching, the association has stressed its key policy demands. ABTA is urging the Government to ‘work with us, not against us’ to help the outbound travel industry continue to grow and support jobs and businesses across the UK.
It is calling for a freeze on Air Passenger Duty (APD) and for children to be exempt from the tax, arguing this would help families with holiday costs and support growth.
ABTA also wants the Government to review business rates for travel retailers, saying travel agencies continue to contribute to high streets and local economies.
The report highlights the pressure of holiday costs on consumers. Of those surveyed who said they planned to spend less on holidays next year, 52% cited the cost of living, up from 47% last year.
ABTA is also calling for a UK-EU youth experience scheme to help young people access tourism jobs in Europe, a reciprocal agreement to make school trips to the EU easier, and reforms to apprenticeships and vocational qualifications to improve career pathways into travel and tourism.
ABTA Chief Executive Mark Tanzer said: “For many people, holidays are their most important time of the year, a special opportunity to make lifelong memories. But as an industry our value extends beyond these amazing experiences, as our research shows, making a significant contribution to communities right across the UK.
“But this doesn’t come easy, the geopolitical situation, climate related events and the wider economy have all had an impact on how people travel, and when they book. There is an increasing trend for people to book much closer to departure, sometimes just weeks before, which makes it very challenging for businesses.
“The recommendations we outline in the report would help to strengthen our sector and ensure that travel remains affordable and continues to be a driver of growth. It should also help to future-proof the industry, recognising that growth can’t come at any cost – while growing our industry we also need to continue the work to mitigate and minimise its impact, both environmentally and socially.”
