Travel trade defends economic value
Britain’s outbound travel industry contributes over £22bn to the UK economy, representing 1.6% of UK GDP.
This was the figure released by ABTA this week to accurately demonstrate the importance of the sector to the country’s economy.
"For too long it has been assumed that by going abroad on holiday, money is being taken out of the UK economy," said ABTA chief executive Mark Tanzer.
"This report proves conclusively that the foreign holiday market makes a huge contribution to the UK economy and is an essential component of a healthy and dynamic UK economy.
"With this in mind the Government must recognise and support outbound travel in its current and future policies and planning strategies to deliver growth to the wider economy."
Unveiled at ABTA’s annual Travel Matters policy event, the report by the Centre for Economics Research also found:
– the total economic impact rises to over £54bn, or 3.8% of UK GDP, with the inclusion of contributions made by industries supplying the sector
– holidaymakers spend an average of £532 per head, equivalent to £31.2bn annually, in the UK on products and services before they start their holiday overseas, which is nearly the same as their spend abroad (£31.6bn)
– nearly £1.8bn is spent in UK duty free before holidaymakers even step onto a plane
– the outbound sector accounts for 620,000 people in full time employment, which is more than the arts, entertainment and recreation sectors combined and accounts for 2.6% of the UK workforce.
– the total tax taken from the outbound sector is £6bn per year, with £1.2bn raised from indirect taxes such as Air Passenger Duty (APD).
* Do you think the Government underestimates the importance of the outbound travel sector? Were you surprised by the report’s findings?
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Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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