TOURISM AND AIRLINES HIT

THE economy has lost up to £13million an hour since the pandemic began due to the collapse in domestic and foreign tourism, research reveals.

In January, business for travel agents and tour operators was down by 89 per cent compared with February 2020, according to industry group ABTA. It could take until the mid-2020s for the sector to recover fully.

The UK’s tourism agency VisitBritain estimates £285million was lost on average every day – £11.8million an hour – from the start of the first lockdown to the end of last year. ABTA said the economy had taken a further £13.7billion hit – £1.6million an hour – due to foreign holiday bookings plummeting.

It estimates more than 164,000 travelrelated jobs have been shed over the pandemic. Airports and airlines have been hit hard, with at least 100,000 aviation-dependent jobs believed to have been lost.

Figures compiled by the International Air Transport Association show the UK sector’s contribution to gross domestic product plunged 66 per cent last year, second only to Spain, where it fell 73.5 per cent. UK airlines also saw the biggest fall in traveller numbers – 193.6million – and the largest drop in passenger revenues – £25.5billion.

IATA estimates 858,500 British jobs that rely on aviation and international travel remain at risk. The Airport Operators Association fears some airports may not fully recover until 2025, while airlines are not expecting profits again until 2022 or 2023.

Heathrow boss John Holland-Kaye added that ‘British exporters lost £15billion in 2020 – all because the passenger planes that carry their goods from Heathrow to customers around the world sat idle’.