Abta has also called on the government to provide business support to travel businesses that are not based in retail premises, such as tour operators; work closely with the British Business Bank and lenders; and freeze Air Passenger Duty for the remainder of the current parliamentary term.
The requests come as part of a letter written by the association to Jeremy Hunt ahead of the fiscal statement on 31 October, to "demonstrate the value of the travel industry to the UK economy" and highlight what the industry needs to recover from the pandemic and survive the cost of living crisis.
It reads: "While many of the challenges currently facing the UK are economy-wide in nature, including rising energy costs, not all sectors of the economy are entering the crisis from the same starting point.
"Businesses in the travel sector are only just emerging from considerable trading restrictions that were in place for two years from March 2020, and many travel businesses have been unable to recover their financial positions to the same level as other areas of the UK economy."
Abta said it is "vitally important" sustainable longer-term solutions are found to enable businesses to trade their way through the crisis.
Mark Tanzer, chief executive of Abta, said: "The new chancellor must take the opportunity to use the full Budget statement later this month to establish a plan to help businesses continue to recover from the pandemic and facilitate their growth.
"The outbound travel sector is a major contributor to the UK economy, generating £49bn in GVA and supporting 720,000 jobs. Our latest research forecasts that outbound travel has the potential to grow 15% by 2027 but that is dependent on the right support and framework from government."
