Hardship is still gripping the industry despite brighter outlook, stresses ABTA chief

Monday, 26 Feb, 2021 0

ABTA Chief Executive Mark Tanzer has spoken of the still ‘incredibly tough times’ for the industry as hopes for industry sector support from Chancellor Rishi Sunak receded.

With international travel potentially re-starting in the second half of May, and tour operators reporting bumper sales since Monday, tailored support at this stage of the crisis would appear unlikely.

In a video and blog to members, Tanzer attempted to steer the messaging back to the financial hardship still facing the industry.

He also said ABTA would take part in the reconvened Global Travel Taskforce to plot a way for international to resume, while talks were already underway with destination partners over issues such as pre-departure testing.

"The Prime Minister’s roadmap announcement on Monday delivered a rare bit of good news for the industry and it is good to see some customers responding to this by making plans and bookings for this summer," he said.

"We are already engaged with Government ministers and officials on the next steps for developing the roadmap for reopening travel and will be contributing to the work of the Global Travel Taskforce…..to make sure the views of our members are heard.

"We are under no illusion there is a lot of work that still needs to be done before people start travelling again and this remains our utmost priority."

Turning to the financial support, Tanzer said it was crucial the Chancellor addressed the hardships still confronting the industry, stressing that many businesses were facing ‘incredibly tough times’ and a ‘cash crunch’.

"It is important we continue to make the case for tailored financial support for the sector," he said.

"With 12 months of lost income, travel remaining at a complete standstill and this year’s ski season and Easter holiday lost to the pandemic, difficult months still lie ahead and we need the Government to support the industry through this time.

"It was encouraging to hear Boris Johnson on Monday give some recognition to travel, tourism and aviation being among the hardest hit sectors by the pandemic.

"The Chancellor now needs to use the Budget next week to act by extending furlough, VAT deferrals, and business rates relief for those sectors that will face a more gradual recovery, such as the travel industry.

"We also continue to call for tailored support in the form of grants which are available to all travel businesses."

Tanzer added that he hoped the potential reopening of travel would give ‘confidence to financial partners and regulatory bodies’ in the run up to ATOL renewals.