Economy faces £22bn hit from air travel collapse
THE collapse of international air travel in the wake of the pandemic could deal our economy a £22billion blow, an industry body warns.
International visitor spending could plunge by 78 per cent compared with 2019 – equating to a loss of £60million a day.
The World Travel and Tourism Council said yesterday that large numbers of tourists have been avoiding the UK because of “continuing uncertainty around travel restrictions”.
Gloria Guevara, president and chief executive of the WTTC, warned it could take years for the country to recover. She said: “The economic pain and suffering caused to millions of households across the UK, who are dependent upon travel and tourism for their livelihoods, is evident from the latest figures.
“It could also threaten London’s position as one of the world’s premier hubs for business and leisure travel, which could see other destinations take over.We urgently need to replace stop-start quarantine measures with rapid, comprehensive and cost-effective test and trace programmes at departure points across the country.
“This investment will be significantly less than the impact of blunt quarantines, which have devastating socioeconomic consequences.”
The forum’s 2020 Economic Impact Report said travel and tourism was responsible for almost four million UK jobs in 2019, amounting to 11 per cent of our total workforce.
And nearly three million jobs supported by the industry could be
at risk of being lost in a “worst case” scenario, the WTTC said.
Nearly 50 million overseas tourists who visited the UK last year spent £28.4billion.
Spending by international arrivals this year is predicted to plunge to 22 per cent of this.
Americans spent the most, followed by Chinese tourists.
France and the US are usually top in terms of the highest visitor numbers to the UK.
Meanwhile, Gatwick has revealed plans to cut about 600 jobs. The move by our secondbusiest airport represents nearly a quarter of its workforce.And it comes as August passenger numbers are down 80 per cent compared with 2019.
The airport in West Sussex said it is planning a “significant restructure across its business”, aimed at reducing costs and ensuring it is “best placed to respond quickly to future growth”. Chief executive Stewart Wingate said: “If anyone is in any doubt about the devastating impact Covid-19 has had on the aviation and travel industry, then today’s news we have shared with our staff, regarding the proposed job losses, is a stark reminder.
“We are in ongoing talks with Government to see what sector-specific support can be put in place for the industry at this time, alongside mechanisms which will give our passengers greater certainty on where and when they can safely travel abroad.
“This will not only help Gatwick but the wider regional economy which relies on the airport.”
Rolls-Royce plans to close its Annesley plant in Notts by the end of 2022 and transfer the 120 affected staff to its main base in Derby.
The aerospace giant has already announced 9,000 job cuts since the start of the pandemic.