//Travel industry delivers 36% growth to UK economy since 2014

Travel industry delivers 36% growth to UK economy since 2014

ABTA has revealed that the contribution of outbound travel to the UK economy has increased by a third since 2014.

The overall contribution to the UK economy from outbound travel now stands at £37.1 billion and 1.8 per cent of GDP, up 36 per cent from £27.1 billion in 2014. This is the Gross Value Added (GVA) of the travel industry, which takes account of direct spend on travel services and holidays, as well as a range of associated products and services such as duty free, cameras and sun tan lotion.

The findings are from ABTA’s new report Driving Growth – The economic value of outbound travel, which analyses the economic contribution of the UK’s outbound travel industry. It finds that travellers now spend more in the UK before they travel than they do while abroad.

The direct economic impact of travel – the revenue generated from specific travel services, such as flights, and package holidays – is £15.9 billion and 0.8 per cent of GDP. This is up from £11.7 billion in 2014.

The travel industry is a big employer within the UK, directly employing 221,000 jobs and supporting a further 526,000 jobs in the wider economy including retail staff and manufacturers. Both have increased since 2014 – from 214,000 and 435,000 respectively.

The report also calls for government to recognise the contribution the industry makes and support it with appropriate policy and tax frameworks.

Chief executive of ABTA Mark Tanzer says: “Too often the contribution of the UK outbound travel industry is overlooked in favour of a myth that overseas travel creates a ‘tourism deficit’ with money going overseas which could be spent in the UK. The evidence is clear that this is not the case – the benefits of the outbound sector are being felt by the wider economy in terms of jobs, support for other businesses and tax contributions to the Treasury. In order to continue to grow and thrive, government needs to make sure the right tax and policy framework is in place.”