Image via Arif Gardner
Abta chief Mark Tanzer said Brexit is approaching “crunch time”, welcomed MPs’ vote on Heathrow expansion and criticised the timing of the new package travel regulations in a key speech to industry leaders.
Speaking at Abta’s Travel Matters conference in London this morning, Tanzer said he “can’t think of a time” when the tourism and political agenda have been more closely intertwined.
On Brexit, he said the UK’s future as a trading nation was one of the central issues, adding: “I’m sure many in this room share my frustration at the lack of progress, or clarity, in the Brexit process.”
Tanzer had called for urgent progress in matter relating to aviation access, movement of key workers, VAT and consumer rights a year ago.
“Twelve months’ on, and we still don’t have any clarity on any of these,” he said. “On aviation access, probably the most critical issue, the government has said that is ‘fully expects’ that a deal will be done before March 2019. The industry, along with the rest of the nation, is holding them to account on this.”
He praised businesses for speaking out against a “cliff-edge” exit from the EU, adding: “The attacks on business from senior politicians show how frayed relations have become. We are surely approaching a crunch time, when hard choices will have to be made, and the government should listen to those who have knowledge on their side, rather than just ideology.”
But despite his criticism of Brexit progress, Tanzer was optimistic on travel’s future. He said: “Even now, in spite of general uncertainty and the devaluation of sterling, bookings are up, in volume and value. That shows an enduring commitment to and confidence in taking holidays overseas.
“Tourism to the EU has been a huge success over the past 25 years, and there is no doubt that both we as a source market and the EU as a destination market are committed to maintaining that success.
“And beyond our domestic market, I believe there is a major opportunity for the UK to establish ourselves as the pre-eminent organisers of travel, whether that means running airports, delivering sustainable aviation, managing complex accommodation supply chains, or keeping customers safe and confident to book.”
Tanzer pointed out that worldwide tourism is growing at 4% per annum, and urged the industry to “challenge the government to put travel and tourism at the heart of its industrial strategy”.
“I believe that we, at Abta, together with our members, have a role to play in articulating and promoting a compelling vision,” he added.
Summing up the previous year’s events in travel, Tanzer noted the “surprise political decision” to repatriate all Monarch customers following the airline’s collapse in October, “and the uncertainty about who was going to pay for it”.
He said he was “pleased” the government is looking again at the issue of airline insolvency and said Abta looked forward to “concrete proposals that will bring clarity and consistency in advance of any future failure”.
He was more upbeat on the recent vote by MPs to press ahead with expansion at Heathrow airport, repeating that Abta welcomes the decision.
But he added: “Many obstacles remain to be overcome, not least the cost and the financing of the final plan.”
He said the agreements sends a “welcome signal about our future trade ambitions” but added that “the benefit must not be compromised by a steep rise in airport charges which will throttle demand”.
Tanzer also spoke on regulatory issues, most notably the new package travel regulations which come into force on July 1.
He suggested, with the weight of Brexit on its shoulders, that “the Civil Service seems to be creaking under the weight of work”.
“The Package Travel Directive should have been transposed into UK law by January 1,” said Tanzer. “Instead, it arrived six months late, leaving only a short time for the industry to see the final shape of the regulations. This really is unsatisfactory, and my concern is that as the legislative focus shifts from Brussels to Westminster there will be insufficient resource to meet industry’s needs.
“The answer is not to hurry legislation through by cutting back on consultation time. This may produce a short term result, but the long term damage will outweigh any gain.”
And, with the implementation of new Atol regulations on the horizon, Tanzer said: “It is vital that the CAA continues to engage meaningfully with us in respect of any future obligations on our members”. He also praised the CAA for its operational handling of the aftermath of the Monarch failure.
The speech also touched on the progress made in tackling fraudulent holiday sickness claims – an issues both Abta and Travel Weekly campaigned on – noting the criminal prosecutions that have gone through the justice system and a change in government policy to bring overseas claims in line with the UK’s fixed costs regime.
“The solution to the problem in the long-term is legislative,” he added and said “more work remains to be done”, including raising the small claims limit. “But I think we can point to the handling of this issue as an excellent example of an industry bringing a fact-based proposal to government, and the government taking action in the legitimate interests of business, and of the public.”
Tanzer summed up “a very busy year in respect of new regulations for the travel sector” by mentioning January’s introduction of the Payment Services Directive, which prohibits charging for card payments and May’s introduction of the General Data Protection Regulation (GDPR).
“That’s a lot for companies to have to absorb, and there are real cost implications in the implementation of these regulations,” he said. “There are three lessons to be drawn – firstly, we should always resist the inclination to ‘goldplate’ regulation. The principle of strong regulation is not only accepted, but welcomed by our members, but every additional feature adds cost and complexity.”