ABTA urges government action to prevent catastrophic damage to tourism sector

Monday, March 30, 2020

ABTA has again written to government ministers, including the office of the prime minister, to urge immediate action to prevent catastrophic damage to the UK travel industry.

ABTA believes there is a lack of action from the government in support of the tourism sector and has written to the government ministers including the office of the prime minister to take immediate action to prevent the catastrophic damage to the UK travel industry.

ABTA chief executive, Mark Tanzer stated that the global pandemic has put enormous financial strain on tour operators and travel agents, with businesses seeing a collapse in sales while facing immediate repatriation costs and refund demands for cancelled holidays on a scale that is unmanageable in the short term.

He went on saying that these businesses are themselves waiting for refunds from hotels and airlines and without this money, they simply do not have the cash to provide refunds to customers within 14 days.

The existing regulations are entirely unsuited to deal with this situation.

They want to avoid the scenario ofnormally successful travel businesses employing tens of thousands of people facing bankruptcy, resulting in holidaymakers having to wait many months for refunds through Government financial protection schemes.

ABTA has asked government should recognise the unprecedented nature of the situation and proposed the followed temporary amendments to the package travel regulations . The 14-day window for refund payments should be extended to a four-month period.That government should confirm the ongoing protection of refund credits.That where suppliers (e.g. hotels or airlines) cannot or will not refund tour operators, there should be an emergency government consumer hardship fund to help fulfil refund payments.

Countries like France, Belgium, Denmark and Italy have already announced similar regulatory changes to preserve their travel industries.

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