Industry laments testing delay as Advantage warns of ‘financial ruin’

The retention of the 14-day quarantine period until at least November has exasperated industry leaders as they stressed action is needed now to stem job losses and business closures.

While broadly welcomed, the establishment of a Global Travel Taskforce to explore how a testing system may work will further delay any travel recovery.

Despite months of lobbying and discussion, the taskforce will spend several more weeks examining the best way forward.

Positive remarks about rebuilding international travel did little to quell industry unrest.

The frustration was led by Julia Lo Bue Said, Chief Executive of Advantage Travel Partnership who described the government response as ‘utter chaos’.

"We are now seven months into a pandemic with a government that appears to have no thought-out strategy or concrete timescale on testing for travellers which is creating confusion and frankly utter chaos," she said.

"While the announcement of a new Global Travel Taskforce is a step in the right direction, it does not alleviate the financial strain and frustration placed on the travel sector at this moment in time, and we need assistance now.

"It seems as though this government is hell-bent on keeping the industry on the naughty step, with a complete lack of comprehension on how the industry can survive this crisis.

"Without help or a clear path to recovery, this will cost the UK economy over £60bn in leisure and inbound activity but over £220bn in business travel that relies on aviation, events and meetings."

She said the industry has been ‘totally sidelined’ despite being a key economic driver.

Many Advantage agents face ‘financial ruin’ unless the government takes immediate steps to provide further assistance, Said added.

"These are businesses that are viable, some are family run companies, in local communities up and down the UK that have traded profitably for many years but when you have not been able to trade at all and have had to refund all the income you have earned – in some cases refunds for bookings made over a year ago – how is any business supposed to survive this?

"The future looks bleak: there is a tidal wave of business failures coming our way and further heartache about to hit our industry as a tsunami of redundancies approaches."

ABTA Chief Executive Mark Tanzer said the formation of a taskforce showed ‘recognition’ of the need to ‘get people travelling’.

But he said further delays to a testing system will ‘only serve to exacerbate the industry’s struggles’.

"The taskforce needs to focus on decisive and urgent action, not only on rapidly introducing a testing regime, but also on moving to a regionalised quarantine approach and lifting the global advisory against travel," Tanzer said.

"Other countries have already moved to introduce testing, and further delays will only serve to exacerbate the industry’s struggles – especially as the winter season is fast approaching. With furlough ending this month, and the new Job Support Scheme doing little to support travel businesses, without tailored support we’ll see more job losses and businesses folding."

The Board of Airline Representatives UK was equally underwhelmed at developments.

"This far into the crisis airlines expected more detail than an announcement of a new taskforce," Chief Executive Dale Keller said. 

"The industry has been continuously engaged with the Government, including in the Expert Steering Group formed back in May. A huge amount of international experience and proposals have been input so far, including the benefits of pre-departure testing, and we believe that a scheme could be implemented very quickly in a matter of weeks."

Keller said it was ‘concerning’ that the Transport Secretary was ‘still quoting only 7% effectiveness of testing on arrival at airports’.

"That figure has been ‘wholly dismissed as flawed assumptions’, he said. "If the Government wants more data it should urgently take up the industry’s proposals for a trial based data-led approach to inform the taskforce and achieve the best outcomes.

"Every day that overseas markets remain closed is costing the UK heavily in lost jobs, collapsing trade and negative social impacts, and we urge the UK Government to bring forward a passenger testing regime with utmost urgency as a national priority."

Virgin Atlantic said the announcement represents ‘much needed progress’.

But a spokesperson added: "Every day counts when Britain’s economy and half a million jobs that rely on aviation are at stake.

"We support the Government’s decision to opt for a single-test, private sector-led, passenger-funded approach that does not compete for, nor divert, vital NHS testing resources, to reduce travel restrictions while protecting public health.

"But a firm commitment that a comprehensive testing regime will be implemented in November is required to boost consumer confidence, enable global travel and protect jobs.

"A test on five days, which the Government’s own evidence suggests would be ‘highly effective’, must be the starting point.

"Trials between Heathrow and New York should take place in parallel to generate real world data for a pre-departure and on arrival testing approach, as well as regional mainland travel corridors, so that policy can quickly evolve."

Virgin added that removing quarantine is the ‘only way to truly open up the skies and enable the UK’s economic recovery to take-off.

By Steve Jones, Contributing Editor