Travel sector contributes £80bn a year to UK economy

A new joint report from ABTA and UKinbound outlines the value of international travel to the UK economy in terms jobs and taxes.

The report, International Travel: Powering the UK economy, looks at the combined value of UK inbound and outbound tourism, and is based on research from leading consultants York Aviation1.

The report finds that each year UK international travel:

contributes £80bn to the UK economy in GVA2, equivalent to 4.0% of the UK’s total GVA;

supports 1.5 million jobs – 4.5% of all jobs in the UK;

provides £13.2bn in taxes;

generates £84bn in travel-related spending across the UK.

As well as outlining the sector’s contributions, the report also looks at the industry’s potential for growth.

It says that, with the right policy framework, inbound and outbound travel could outperform the average growth for the UK economy over the next five years

It finds inbound travel is forecast to grow 20%, and outbound travel 15%in the wider UK economy by 2027.

ABTA and UKinbound produced the joint report to demonstrate that, while outbound and inbound sectors have different customers and operate in different markets, the two sectors are interdependent and interlinked.

The report comes at an important time as Rishi Sunak establishes his new Government and the Chancellor prepares his Autumn Statement on 17 November.

The associations are urging the Government to recognise the contribution that international travel makes to the UK economy, and the important role they will play in driving the UK’s wider economic recovery.

For the first time ever, the research is also available at a constituency level, meaning ABTA and UKinbound Members, as well as the wider industry, can access data on the contribution travel makes to their local economies and communities.

The research behind the report is the most comprehensive and detailed piece of analysis in this area to date.

It can be found in full at www.abta.com/internationaltravel.

Mark Tanzer, Chief Executive of ABTA – The Travel Association said: “At a time when the industry is experiencing serious challenges, it is vital that policymakers recognise the critical role that international travel plays in the UK economy..”

ABTA and UKinbound will be sharing the report with Government Ministers and officials, as well as MPs and representatives of the devolved administrations.

Template materials will also be made available to support those from across the industry who wish to share the report with local MPs.

Joss Croft, Chief Executive of UKinbound said: “This new data not only highlights the value and importance of international tourism but also the growth opportunity it presents for the UK economy.”

ABTA will be exploring the current political and policy landscape at its Travel Matters conference on 6 December.