A new survey carried out by the travel trade association Abta has suggested that seven out of 10 travel firms who have staff on furlough are to make redundancies this month.
On 30 September the government’s Job Retention Scheme will come to an end which will see thousands of jobs lost in the outbound travel sector, which will bring total job losses in the industry amounting to almost 100,000.
Travel agencies and tour operators had the second highest rate of staff on furlough of 46% of any other industry except for aviation which saw 51%, latest government data reveals.
Summer holidays were down by 83% this summer compared to 2019, with almost half of travel firms reporting they had seen no year-on-year increase in travel bookings, despite the successful vaccine rollout programme.
Mark Tanzer, Abta chief executive, said, “The Government’s travel requirements have choked off this summer’s travel trade, putting jobs, businesses and the UK’s connectivity at risk.
“While our European neighbours have been travelling freely and safely, the British were subject to expensive measures which have stood in the way of people visiting family and friends, taking that much-needed foreign holiday and making important business connections.
“The Government needs to wake up to the damage its policies are doing to the UK travel industry and the impact they will have on the wider economic recovery.
“It is the fares from leisure passengers that keep our planes flying and routes open.
“A diminished holiday industry is a diminished aviation industry with fewer routes and fewer flights.
“That’s not how you achieve a global Britain.”