Covid-19: Support for Aviation, Tourism and Travel Industries

Neale Hanvey Excerpts

Thursday 24th June 2021 Westminster Hall

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

Thank you, Dr Huq; it is a pleasure to speak under your chairmanship. I thank the hon. Member for Crawley (Henry Smith) not just for securing this debate but for his tenacity and championing of this cause from the very start. That really should be recognised. I also thank the Minister before he even gets to his feet. Our meetings have not been as productive as I would have liked, but despite that he has been available and he has listened. Like others, I urge him to listen to the gaps. It is the gaps that we are concerned about today and the gaps that urgently need the support.

As the Minister will know, my constituency of Kirkcaldy and Cowdenbeath is very close to Edinburgh airport. Constituents of mine include pilots, cabin crew, ground crew and those who work in the general airport environment. I also have constituents who are travel agents, and they are the group I am currently most concerned about.

In ordinary times, outbound travel is worth more than £37 billion a year to the UK economy. It supports the employment of more than half a million people across the UK and plays a crucial role in sustaining our leisure and business activity. ABTA’s collective membership puts people on planes, ships and trains—outbound, inbound and domestically—across leisure and travel. It is fundamental to our regional connectivity, opportunity and prosperity. The aggregate turnover is £40 billion in normal times and that supplies over £6 billion to the UK Treasury.

Those businesses know that recovery will be slow. The travel sector has been hardest hit, with bookings down by 90% and in some cases more. A 2021 survey of ABTA members found that 57% of small and medium-sized enterprise travel agents did not believe they had the cash to survive more than six months, based on current conditions and available Government support. Strikingly, 87% of SME travel agents believed they would fail within a year.

I am not complaining about this only to the UK Government; I am raising the issue across these islands. The Scottish Government recently said that travel agents have had support. They have had support in Scotland and down here, but it is not enough, it is not tailored and it does not recognise their unique needs. That is the fundamental issue. It must be really hard for business people who have invested their lives in building a thriving travel business to hear of an underspend by the Scottish Government of more than £450 million when they desperately need that help now.

This is about a joined-up approach. It is about coming together and recognising where the gaps are, and, most importantly, recognising the fundamental role that travel agents play in the industry. The airlines have had staff on furlough and been bailed out, and the public have either been on furlough or been allowed to continue to work and enjoy an income, but the travel agents are the ones who have moved bookings, taken the cancellations and kept open the pipeline of supply for the recovery we all hope for.

All of us—Government, tour operators and airlines—should be bending over backwards to ensure that travel agents get the support they desperately need, because they will secure and supply business as we move forward.