Travel has ‘outperformed’ all other consumer sectors, Abta chief tells Convention

Ministers urged to invest APD in SAF as climate change challenge ‘accelerating’

Travel has ‘outperformed’ all other consumer sectors, Abta chief tells Convention

The travel sector has “outperformed every other consumer product and service” in the last two years despite higher interest rates leading to “general belt tightening”, according to Abta chief executive Mark Tanzer.

The Abta chief hailed “the astonishing recovery in travel and tourism” since the pandemic as he opened the Travel Convention in Greece on Tuesday, noting: “Abta now holds over £1 billion of bonds for the first time, driven by growth in members’ sales.”

Tanzer added that Abta’s latest Holiday Habits report “shows people increasingly relying on the support of travel organisers” and suggested: “The trust in travel professionals is counter to the general decline in trust in the UK – in politicians, in media, in institutions.”

However, he warned: “The challenge of global warming and climate change has intensified. The evidence of accelerating change is all around us.

“It’s quite possible certain types of holiday, in certain locations, will become unviable in future, and the unpredictability of the weather increases business risk throughout the supply chain.”


More:More people using agents and operators to book holidays, Abta survey reveals


Tanzer insisted: “We’re taking our responsibility seriously in travel, but we need to push for low-carbon energy efficiency throughout the supply chain.”

He called on the government to use Air Passenger Duty (APD) revenue to fund development of alternative fuels, saying: “We’re looking for the new government to help accelerate production of sustainable aviation fuel (SAF).

“Without this investment, the commitment to use 10% SAFs on all flights by 2030 will be unachievable or prohibitively expensive,” he warned, while insisting: “The funds are there.

“The Office for Budget Responsibility forecasts APD will rise from £3.8 billion in 2023-24 to £5.9 billion in 2028-29. Surely this growing consumer levy should be used at least in part to keep UK international travel energy compliant.”

Tanzer also warned: “We cannot turn a blind eye to overtourism, saying it’s due only to the growth of private rental market. Creating a strong bond between a destination community and its visitors is essential.

“Finding the right balance between the interests of the hosts and visiting tourists requires adaptation on both sides.”

He told the Convention: “The new government has made growth a priority. Travel and tourism must be an integral part of its growth strategy.

“We continue to push for the government to extend the Youth Mobility Scheme to allow young people to gain experience working overseas in the travel industry, making clear this is quite distinct from the broader freedom of movement debate.”

Tanzer suggested the industry is “at an inflexion point”, saying: “We do face challenges, but we move forward from a position of strength.

“The travel industry will have to adapt and change to succeed in a low-carbon future, and we’ll have to take the customer with us.”