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ABTA Report Highlights Potential for 20% Growth in UK Outbound Travel by 2030 – Image Credit Unsplash+
New data from ABTA suggests the UK outbound travel industry could grow by 20% by 2030 if supported by appropriate government policies.
A recent report released by ABTA, coinciding with the Government’s Spending Review and ABTA’s Travel Matters conference in London, indicates significant growth potential for the UK’s outbound travel sector. The report projects a possible 20% increase by 2030, emphasizing the need for a supportive tax and policy framework to achieve this growth.
The findings underscore the critical role of outbound travel not only in economic terms, with an annual contribution of £52 billion in Gross Value Added (GVA) and £10 billion in taxes, but also in supporting regional airports and inbound tourism. Key airports such as East Midlands, Manchester, Birmingham, Bristol, and Exeter rely heavily on outbound leisure passengers, with dependency rates ranging from 75% to 90%.
ABTA’s report points out that the survival of many regional airports, which are crucial for inbound tourism, depends on the volume of UK residents traveling abroad. The association warns that regional airports could face significant operational challenges without these outbound flows, adversely affecting local communities dependent on tourism revenue.
The report also highlights recent positive developments, including decisions on airport expansion, airspace modernization, and the backing of a domestic Sustainable Aviation Fuel (SAF) industry. Additionally, it mentions the UK-EU summit agreement exploring a youth experience scheme as a positive step for the travel sector.
However, ABTA stresses the importance of timely and effective policy implementation. The association outlines three key areas for government action: leadership in sustainable travel through policies like the SAF mandate, enabling UK travel businesses to compete globally by revising business rates and reducing tax burdens, and enhancing UK-EU relations to facilitate travel and recognize UK qualifications abroad.
The association’s call to action comes at a critical time. It urges the government to capitalize on the outbound travel sector’s potential to drive broader economic growth and job creation across the UK. The full report, which provides detailed insights and recommendations for policy makers, is available for download on ABTA’s website.
