The association said the figures “reveal the devastating impact” of travel restrictions on the sector as it once again urged government to provide dedicated financial support. 

As additional restrictions came into force on Tuesday (7 December), most notably the reintroduction of pre-departure testing, Abta warned the measures “could tip some companies over the edge” unless the government stepped in to help.

Chief executive Mark Tanzer said ministers “should be looking to soften the blow” after tightening travel restrictions by providing financial support in the shape of grants and the return of furlough for travel staff.

“Ministers have previously explained to us that the government’s approach is to enable the travel industry to trade their way out of this crisis, instead of providing support. However, it is clear they have now abandoned this approach,” he said.

“The transport secretary said himself last week that the reintroduction of pre-departure testing would kill off the travel industry, so the government should be coming forward urgently with a package of financial support for travel agents and tour operators.”

Abta said the new rules – brought in to try and curb the spread of the Omicron Covid-19 variant – came at a time with the travel industry “still reeling” from previous restrictions and having suffered two severely impacted summer and winter seasons during the past 20 months.

Volume of new bookings taken across summer and autumn 2021 was found by Abta on average to be at 28% compared to the same period in 2019, with  businesses reporting average turnovers for the financial year at just 22% of pre-pandemic levels.

The return of pre-departure tests and PCR tests on or before Day Two of arrival, takes the industry “back to where it was in the summer”, described Abta, adding how a third winter season was now “under threat” and fuelling weak consumer confidence in the run up to the peak booking period for next summer.

“We can’t go on like this with requirements changing but nothing to support those businesses worst affected,” added Tanzer. 

“It is the smallest companies that are suffering the most – with travel bosses having already taken every step possible to keep their businesses going – including drastically cutting staff levels.

"Not only has there been an absence of any specific support for the sector, but many companies have either been excluded or refused access to the general grant funding – so it’s no wonder that many of our members feel totally abandoned by the government.”

’Obligation’

Abta stressed it recognised the government’s need to protect public health, but argued that “as it is choosing to implement these measures” government “has an obligation” to offer financial support for those businesses worst affected.

“Specific support for the travel industry has been entirely absent throughout the entire pandemic. Unlike other struggling sectors, such as hospitality and the arts, there has not been any dedicated funding for travel agents and tour operators – and many of these businesses have been rejected for general grant funding,” said the association in a statement.

New Abta research claims that half of travel businesses which applied for money from the Additional Restrictions Grants programme were denied support and a fifth of firms have not received any grant funding at all since March 2020.

“The government also needs to look at the cost of testing which has proved for many prohibitively expensive throughout the pandemic. Market competition has failed to reduce prices, so the government must step in and consider a price cap on PCR tests and the removal of VAT,” Abta added.