ABTA Calls for Government Action to Boost UK Outbound Travel and Drive Economic Growth

Accommodation Singapore introduces

New data from ABTA – the Travel Association – reveals that the UK’s outbound travel sector contributed £51.6 billion to the national economy in 2023. This marks a 5% increase from 2019, when the figure stood at £49 billion.

According to ABTA, this growth highlights the significant role the outbound travel industry plays in both national and local economies, supporting 818,000 jobs across the UK. The association emphasizes that with the right policies, the sector can contribute even further to the Government’s growth objectives.

However, ABTA has expressed concerns that the industry’s expansion may be jeopardized without the right policy framework. The association also raised concerns about consumer and business confidence levels, particularly in light of the recent Budget.

Travel businesses are facing additional financial pressures, including increased employment costs due to employer national insurance hikes. Additionally, Air Passenger Duty is set to rise by 14% for short-haul economy flights starting in April 2026, with a £12 increase for long-haul economy flights.

ABTA has expressed a strong desire to collaborate with the Government to unlock the full potential of the travel industry. Key policy areas for collaboration include:

Mark Tanzer, Chief Executive of ABTA said:

“The new Government has placed delivering growth at the top of its agenda, and today’s figures clearly show that travel can play a leading role in stimulating the growth we all want to see.

“Communities up and down the country are benefiting from the revenue and jobs created by outbound travel and we want that to continue. 

“The last few years have not been easy for our industry, but travel has proven remarkably resilient to date. Whilst we should celebrate that fact, with the effects of the pandemic still being felt by travel businesses and the ongoing cost of living challenges facing consumers, we cannot simply take our future success for granted. 

“There are notable obstacles to businesses operating in travel, including travel to the EU – home to the UK’s largest holiday destinations – and increased costs of doing business at home. 

The figures were released to coincide with ABTA’s Travel Matters event, held in Westminster today, and are the headline findings from a full report that will be published in early 2025.