The British Association of Travel Agents (ABTA) is calling on the UK government to harness the huge growth potential offered by outbound tourism, warning that without the right policy and fiscal support, a unique opportunity for the national and regional economy is at risk of being missed.
According to the new ABTA report, published on the occasion of the government’s budget review and the “Travel Matters” conference, the British outbound travel market has the potential to grow by 20% by 2030, contributing even more to growth, job creation and support for regional communities.
Strategic pillar for the economy and local communities
Outbound tourism already generates 52 billion £10 billion a year to the UK economy in terms of Gross Value Added (GVA), while boosting public coffers with £10 billion in tax revenue. It is also a fundamental pillar for regional airports and for domestic and inbound tourism.
The report notes that many regional airports rely almost entirely on outbound travel demand. In particular, 90% of passenger traffic at East Midlands Airport, 78% at Manchester and Birmingham airports, and 75% at Bristol and Exeter airports comes from British travellers going abroad on holiday.
“Without the volumes of travellers leaving the UK, regional airports would struggle to survive, which would also seriously affect inbound tourism, with consequences for local economies that depend on tourism revenue,” ABTA said.
Music to the government’s ears – but action needed
ABTA believes the findings of the report are “music to the government’s ears” as they meet its key commitments to economic growth and strengthening cities and communities across the country. However, it warns that for the predictions to become a reality, a stable and supportive regulatory and tax framework is required.
ABTA Chief Executive Mark Tanzer said:
“The government has stated its intention to deliver growth for the UK economy and cities. We urge it to exploit the potential of outbound tourism, particularly as it boosts other sectors such as exports and business travel.”
Sustainable development with government support
Tanzer also stressed the importance of responsible development:
“The UK has the opportunity to become a world leader in sustainable tourism. To achieve this, we need to accelerate the transition to zero emissions, which cannot be achieved without government support.”
ABTA recognises some positive steps from the government, such as progress on airport expansion, airspace modernisation, and policies to develop domestic production of sustainable aviation fuel (SAF). It also welcomes the UK-EU summit agreement, which includes exploring a youth exchange scheme.
Three key policy priorities to seize the opportunity
ABTA outlines three policy priorities it sees as crucial to achieving the growth it sees:
- Leading sustainable tourism:
Implementing policies such as mandatory sustainable aviation fuel (SAF), creating a revenue support mechanism for aviation and investing in ‘green energy’ infrastructure at ports.
- Competitiveness of UK tourism businesses:
Reviewing tax and council tax burdens, supporting local tourism entrepreneurship and investing in education and vocational programmes.
- Improving UK-EU relations in tourism:
Resolving issues with the recognition of professional qualifications, cooperating on electronic border control systems and rapidly implementing a youth exchange programme.
ABTA, which is celebrating its 75th anniversary this year, is calling on the government to act decisively and without delay. “Often in the past, many plans have remained on paper,” it stresses. “If the government really wants to boost growth and local communities, it must support one of the country’s most dynamic and extroverted sectors.”
