ARG funding ‘will not go far enough’ to support travel firms

The travel industry was not included in the support package for businesses announced today.

The Chancellor confirmed the cash grants of up to $6,000 for companies impacted by the measures to slow the spread of the Omicron variant.

Travel firms are ineligible for that support but can apply for support from the Additional Restrictions Grant (ARG) fund, which has received a boost of £100 million as part of the announcement.

The industry leaders were frustrated at the outcome and called on the government to add travel companies to the list of eligible firms.

The chancellor's statement ignores the direct impact of government policy decisions on businesses reliant on international travel.

Travel agents, tour operators and travel management companies will be asking why they haven't been treated the same as other businesses.

The travel industry's average annual revenue is down by 80% on pre-crisis levels even before Omicron emerged, and the re-introduction of enhanced testing has added significant costs and discouraged consumer demand.

As the sector approaches what should be the peak sales period for booking holidays for summer 2022, businesses are instead facing another round of heart-breaking and demoralising cancellation, with no indication that the government is listening to the challenges they are facing.

The Additional Restrictions Grants scheme will not be enough to support a sector that has been through 21 months of restrictions. Travel businesses will have to compete with other companies in other industries to get some of this cash. The government needs to stop ignoring an industry that supported over half a million jobs and generated more than $37 billion for the UK economy.

We need ministers to find solutions to keep businesses afloat and save jobs.

Petherbridge called for something.

Immediate lifting of travel restrictions.
Similar to the grants announced today for the hotel sector, winter resilience grants for the travel sector.
Businesses with no income are in need of help with loan repayments.
Rates relief for travel businesses will be extended in the 2022-23 financial year.

If travel restrictions are going to be maintained for any significant period, the government must consider the case for income support.

The Advantage Travel Partnership requested detailed guidance from the Department for Digital, Culture, Media and Sport to understand the definition of leisure businesses, as retail travel agents were included in previous grants.

She pointed out that even if retail agents are entitled to the grants, 50% of Advantage's non-retail members are unlikely to qualify for grants despite seeing an 80% drop in revenue.

Travel companies will have to fight tooth and nail against other businesses to be eligible for the Additional Restrictions Grants that the chancellor has announced, but come at the discretion of local authorities.

She said that it looked as though members were at the back of the queue.

Gary Lewis asked about the travel industry.

Lewis said that the sector has been hit harder and with no industry-specific support. Demand for travel has fallen off a cliff and we have given back our profits.

Consumers have little or no confidence in what is around the corner and the fear and cost of return- home Covid testing has shattered public confidence in travelling abroad.

The sector is the forgotten industry, according to the travel company.

You would think that the hotel sector was the only one affected by the cancellation of shows this December. You can spend a day in the life of a travel agent during the Pandemic. Travel is the forgotten industry.
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December 21, 2021.

In a letter to his local MP, David Rutley, the owner of Henbury Travel said the travel industry felt let down and that the government's support package ignores the direct impact of government policy decisions on businesses.

My response to the #MacclesfieldMP after the statement by Rishi Sunak. The travel industry is left out in the cold, no sector supports it and travel restrictions put jobs and businesses at risk.
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Our first client flew on 18 July.