TUI managing director Dermot Blastland told an ABTA Travel Matters briefing in London today that the government needed to support and help the travel industry and recognise how it can alleviate global poverty.
He also called for the new government to compensate the industry following the volcanic ash cloud debacle this spring.
He told travel industry representatives and journalists in Westminster: “Travel matters to the world economy. Tourism represents 10% of world GDP and is the world’s largest industry. The poorest countries in the world are dependent on tourism for a high percentage of their overseas earnings.
“The UN recognises tourism as a very powerful force for good in reducing poverty.The UK is home to two of the largest travel companies in the world. Yet UK governments to date seem not to recognise, via their overseas development departments, the opportunity this presents in the alleviation of poverty around the world.”
Discussing the volcanic ash cloud, he added: “This was an extraordinary event, made worse by the intervention of the regulatory authorities, and we do believe that the industry is right to request compensation for the cost imposed upon us.
"We aren’t asking for a hand out or a bail out. We are competitive companies, run well, but believe compensation is due when we are expected to be the insurer of last resort in looking after a nation’s citizens.
“That’s the job of government. We are well aware of the economic circumstances that prevail. But that should not be used as a convenient excuse for government to avoid accepting responsibility.”
He also indicated clear reforms were needed regarding financial protection.
He explained: “The existing regulations were conceived in the seventies. The internet did not exist. Low cost carriers didn’t either and the market is now four times larger. Change is needed from the Byzantine mess that currently operates.”
“The proposals for reform of the ATOL Regulations set out in the recent DfT consultation were welcome and represented, in our view, a real step forward. As the largest single contributor to the ATOL scheme, we have a very strong interest in the matter.”
By Dinah Hatch
