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

Patricia Gibson Excerpts

Thursday 24th June 2021 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP) [V]]

We can all agree that of all the sectors affected by the pandemic, aviation, travel and tourism have been hit particularly hard. The Institute for Fiscal Studies has indicated that the aviation sector has been the hardest hit of the entire economy, with hundreds of thousands of jobs lost or under threat. The latest data also shows that travel agencies and tour operators suffered an 89% decline in output in the first year of lockdown, when severe restrictions were imposed across the travel industry.

If the traffic light regulations continue to have the impact that they are having, more support will be desperately needed. We need to retain the existing furlough scheme and self-employed income support for businesses operating in aviation and international travel, without tapering, for a minimum additional six months, with future reviews built in. Also needed is the creation of a new sector-specific recovery grant regime for travel agents, tour operators and travel management companies that rely on international travel for their revenues. Travel agency businesses receive all their income through commission paid close to their clients’ departure dates. Given the cautious restart of travel, they need additional financial support to help them through the coming months. The issue of travel agents carrying the cost of refunding card payments was raised earlier in the debate, and I raised it specifically with the Chancellor last April. It has still not been addressed.

International travel is extremely important to our tourism and hospitality sectors, but we also know that it is important to reduce the risk of importing new cases and new variants of the virus. Indeed, the new delta variant entered Scotland while Scottish restrictions were at their highest levels because the UK Government would not engage with concerns expressed by the Scottish Government. They were too slow to act. That could have undone all the hard work and sacrifice that populations across the UK have made to help beat the virus. That is not good enough.

We need to reinstate a four-nation decision-making approach to international travel, which was suspended by the UK Government as the Scottish Government urged more action. It must be recognised that the aviation industry faces one of the longest periods of recovery, given the impact of covid-19 on route networks. The French and German Governments have given more than twice the financial support for every aviation and aerospace job than the UK Government have.

The Minister will be keen to tell us about the support that his Government have already provided, but there is no escaping the fact that the French and German Governments have provided double the support that those jobs have had in the UK. Clearly, those Governments are backing their travel industries now to help provide a driving force in the economic recovery of their countries. I urge the Minister to do all in his power to provide further support to these sectors at this challenging time.

[Dr Rupa Huq (in the Chair)]

The penultimate Back-Bench speaker is another Scot, but in the Boothroyd Room this time. I call Neale Hanvey.