The House Magazine

In the past year, the Prime Minister has publically recognised the significant role the travel and tourism industry plays in Britain’s economy. By introducing the government’s Tourism Policy in March, he set out the aim to take tourism in Britain to “a whole new level” and harness its huge potential.  That is very encouraging for the 2.65 million people who work in the industry. 
 
The industry is likely to undergo many regulatory changes in the coming year including ATOL reform, the reform of APD and the implementation of the Government's tourism policy.

We need to make sure customers are confident about travelling, which is why reform of the ATOL scheme – originally set up to protect package holidaymakers flying out of the UK - along with the review of the European Package Travel Directive, are so crucial. Under the government’s current proposals, only about half of holidaymakers will be protected.  We want to see every holiday protected, regardless of how it is booked.  That provides clarity for consumers, and a fair competition for the industry. 

The huge increase in the level of air passenger duty (APD) since 1994, is a clear example of how industry growth is being inhibited, rather than supported, by government policy.  We already pay by far the highest rates of aviation tax in Europe.  Earlier in the year, ABTA spearheaded an alliance of more than 25 airlines, airports, tour operators, destinations and trade associations, uniting together to call for a Fair Tax on Flying. The announcements in the Budget are a welcome first step, and we will be sure to feed into the consultation process to reform APD.

At ABTA, we have a holistic vision of the role that tourism can play in a successful economy.  It is a vision that requires many stakeholders, including the Government and Treasury, to play their part.

If we really are to harness tourism’s huge potential, we must ensure that the industry is supported, not hindered by Government.  To succeed, businesses need to be able to compete fairly and to have a supportive legislative and investment framework that does not hamper them, but enables them to develop better quality products and really drive jobs and growth.

Mark Tanzer, Chief Executive, ABTA

To read Why Travel Matters click the image below, or to recieve a free copy, contact the Members' Information line membersinfo@abta.co.uk on 0845 177 2282.