Trade bodies highlight travel’s value Ian Taylor
Abta and inbound association UKinbound launched a report emphasising the huge economic impact of international travel this week as the industry looks to engage with the new government. The report, International
Travel: Powering the UK Economy, estimates the direct impact of outbound and inbound travel on UK GDP at £44 billion and total gross value added (GVA) impact at £80 billion. GVA expresses the value of services after deducting costs. Crucially, the report includes a
new online database displaying the impact not just by region but by constituency, meaning the data can be used to lobby individual MPs.
Abta director of public affairs
Luke Petherbridge said the report aims “to remind policymakers of how important international travel is. Outbound travel is larger than the transport equipment manufacturers’ sector – aerospace, motor vehicles and rail – and inbound travel is the second-largest service export.” He said: “Not all policymakers
acknowledge the importance of international travel. This reminds them of its significance.” Petherbridge noted: “We’ve
produced three reports on the outbound value to the economy. It’s the right time to include inbound. “People will be able to use the
data on the impact at constituency level when they speak to their MPs.” UKinbound chief executive Joss
Heathrow warns it may need to cap festive numbers
Ian Taylor
Industry figures hit out at Heathrow for warning it may need a “highly targeted” cap on passenger numbers at Christmas as the airport removed its limit of 100,000 passengers a day imposed in the summer. The cap, introduced in July, was
removed from last Sunday. But in a statement, Heathrow said: “We’re working with airlines to agree a highly targeted mechanism that, if needed, would align supply and demand on a small number of peak days in the lead-up to Christmas.”
4 3 NOVEMBER 2022 Virgin Atlantic demanded the
airport “avoid passenger capacity limits that would ruin customer plans” and Advantage Travel Partnership chief executive Julia Lo Bue-Said said a fresh cap was “the last thing the industry needs right now”. However, a senior airline source
told Travel Weekly: “Heathrow is doing what it should have done the first time. It’s consulting, looking at options, working with everyone, looking at their schedules. It’s a responsible approach. They’re evaluating everything, which is what we asked for. “Of course, it’s not welcome, but
it’s sensible. Tailoring the response to where there is a problem is sensible. “The emergency cap [of 100,000
daily passengers] caused chaos. “We’re in a much better place now.
We’re confident we’re not going to see a wholesale cap [on numbers] like before. We know a cap isn’t needed. “The wind-up before was that they
brought in a blunt instrument with no notice and then had a blame game. Hopefully, there will be minimal intervention over Christmas.” Heathrow said the mechanism it
is working on with carriers “would encourage demand into less busy
Croft said: “International travel is hugely important. It has the potential to outperform the UK economy. Having the data down to constituency level allows it to be understood at the level of individual MPs. We have a lot of new ministers and secretaries of state. There is an opportunity to use this to educate them.”
The report estimates the
total GVA of outbound travel as £49 billion and inbound at £31 billion, with the sectors together accounting for 1.5 million jobs, or 4.6% of the UK total, and more than 700,000 of these directly employed. It notes growth in both sectors
outpaced UK economic growth of 45% in the decade to 2019, with spending on outbound travel rising 82% and inbound up 55%. And it forecasts growth in international travel will outstrip UK growth in the next five years, at 20% for inbound travel, 15% for outbound and 10.3% growth in UK GDP. The forecasts and figures were
produced by consultancy York Aviation. The report is available at:
abta.com/internationaltravel
Heathrow’s warning of a possible cap on passenger numbers at Christmas is ‘not welcome but sensible’
periods, protecting the heavier peaks and avoiding flight cancellations due to resource pressures”. John Holland-Kaye, Heathrow
chief executive, said: “We’re working with airlines and their ground handlers to get back to full capacity at peak times as soon as possible.” British Airways, which operates
more than half of flights at Heathrow, declined to comment. But Airlines UK, which represents BA, Virgin Atlantic and other carriers, said: “Heathrow must ensure that any mechanism or new cap is justified and has as little impact on traveller plans as possible.”
travelweekly.co.uk
PICTURE: Shutterstock/Nate Hovee
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