[Relevant documents: Fifth Report of the Transport Committee of Session 2019-21, The impact of the coronavirus pandemic on the aviation sector: Interim report, HC 1257, and the Government response, HC 28; Seventh Report of the Transport Committee of Session 2019-21, Safe return of international travel?, HC1341; e-petition 565102, Allow international travel to visit partners and family; e-petition 303081, Support the British aviation industry during the COVID-19 outbreak; e-petition 549014, Extend furlough beyond October for the travel industry; e-petition 331434, Extend furlough scheme for the UK Aviation sector to help stop redundancies; e-petition 552725, HM Government to outline a plan to Save Future Travel; e-petition 332280, A government cash bailout for the coach industry before it’s too late; e-petition 585438, Allow ALL vaccinated British Expats to visit the UK without quarantining.]
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Members who are not on the call list but wish to intervene—do we have anyone of that description? No, that is not necessary. In that case, I call Henry Smith to move the motion.
That this House has considered support for the aviation, tourism and travel industries in response to the covid-19 pandemic.
It is a pleasure to serve with you in the Chair for this important debate, Dr Huq, as we seek to recover from the covid-19 pandemic, and I am delighted to see my hon. Friend the Minister in his place. I will be interested to hear his comments.
Aviation, travel and tourism were among the first sectors to face the negative effects of the covid-19 pandemic, which were almost immediate, and unfortunately, owing to the nature of those industries and the restrictions still in place, they will be among the slowest to recover fully. In normal times before the pandemic, more than 1.5 million people were employed in those sectors. Sadly, many of them have lost their job over the past 15 months or so. About 50% of people in the sector are still on furlough, which finishes at the end of September, and I fear that if travel, aviation and tourism cannot pick up meaningfully over the summer months, many of them will also unfortunately lose their job.
This is devastating for aviation communities such as mine in the Gatwick area. An assessment of unemployment from February 2020 to February 2021 showed an increase of 115% across the nation, but for the top 20 aviation communities the increase was 147%. I do not think we have yet seen the worst of the situation.
Do not mistake this for some parochial plea for support for these sectors because aviation and international connectivity are essential for the UK economy. In normal times, outbound travel accounts for a contribution of about £37 billion to our economy, and inbound travel accounts for £28 billion. That travel has not been able to operate meaningfully for a year and a half, and the impact has been significant. If we were able to operate in a more meaningful way this summer, it would make a contribution to the UK economy of an estimated £19 billion—quite significant.
Given the popularity of the debate, the three Front-Bench spokespeople and the new finish time of 5.25 pm, I reckon that if everyone sticks to within four minutes, everyone gets in and Henry Smith has time for concluding remarks. I call Ben Bradshaw.
Thank you very much indeed, Dr Huq. Many of us here attended yesterday’s day of action for the travel industry. Fine people from all over Britain were there. They do not want a handout. They want to get back to work and they were united in one thing: a feeling of total abandonment by this Government and, I am afraid to say, by my party and all the Opposition parties in this House. In 26 years as a Member of Parliament, I cannot remember an instance like this, when the leadership of all the political parties have been more or less in the same position on a policy, and on one that has no basis in the evidence any more.
We hear the Government say constantly that their decisions are based on the data and public health is a priority, but, as the hon. Member for Crawley (Henry Smith) has already pointed out, that is now clearly belied by the facts. The seven-day covid rate in the UK is as of yesterday 97 per 100,000. In Greece, it is 31— much lower on the islands. In Italy, it is 13—one seventh of the UK rate. In Germany, it is eight—less than a tenth of the rate here in the UK. Yet people arriving from or coming back from those countries to here, all with a negative PCR test, still have to quarantine for 10 days. It makes more sense in health terms to quarantine someone travelling from Ealing to Exeter than someone travelling from Italy, Germany or Malta to the UK.
We had further proof this week when the Government published Public Health England’s findings on the testing of arrivals from amber list countries and all arrivals between 20 May and 9 June. Those results show that the proportion of positive tests on people arriving from amber list countries was 0.4%, compared with a level of 2.7% of the tests carried out on people living here in the same period. That means that someone coming from an amber list country is one seventh less likely to have covid than someone moving around the United Kingdom. Also, not a single variant of concern was found on any passenger returning from amber or green list countries.
It is a pleasure to serve under your chairmanship, Dr Huq. It is also a pleasure to follow my hon. Friend the Member for Crawley (Henry Smith), who has done so much to champion the plight of Gatwick and the wider Sussex community, and my friend the right hon. Member for Exeter (Mr Bradshaw), a fellow Transport Committee member, who speaks for me as well as himself. The remarkable point is that our calls are on all our Front Benches—we are all, cross-party, disappointed with all the Front-Bench positions. We do not feel that we are being led to a better place for our constituents and those who want to go abroad to see their loved ones and retain some life.
I have received emails not only from constituents but from people across the country who are crying out for some form of help to allow them to get back to their lives. I will read a few, if you do not mind, Dr Huq. Anna Wozniak is a cardiac physiologist at Doncaster Royal Infirmary. She has worked hard through the pandemic. She cannot afford to meet her boyfriend in America anywhere and meet the cost of testing, nor to take time off work to quarantine. Erin Cork from London has not seen her boyfriend, who lives in New York, for 467 days. Imagine that.
Missed life events have come through as well. Giulia Molteni is a dual UK-Italian national. She is 35 weeks pregnant with her first child. Her double-vaccinated Italian parents have not seen her while she has been pregnant, and she feels that she needs her mother’s support. Her parents want to come to the UK, but it is a huge financial commitment, and they are concerned that Italy could be added to the red list, as hotel quarantine costs are out of the question. One of our own in the travel sector, Louise Gardiner, works as a ground staff member at Heathrow. She had her son Rowan in May 2020 and he has met his Californian father only four times. He has never met his paternal grandparents. Louise was supposed to move to the US to be with her partner, but due to the pandemic her earnings have been lost, so she no longer qualifies as a sponsor.
Thank you for your leniency, Dr Huq, in permitting me to leave a little earlier. I commend the hon. Member for Crawley (Henry Smith) for securing this debate on a very pressing matter facing many constituents and businesses across the United Kingdom.
Yesterday, I joined representatives of the Association of Northern Ireland Travel Agents, local pilots, cabin crew, ferry workers and hoteliers at a protest at Stormont, as part of the national Unite day of action to highlight to the devolved institution at Stormont the need for support for the sector and to demand a restart to international travel. It has now been over a year of devastation for jobs, family incomes and the future of the sector. Many have already lost their jobs. In my constituency, just three weeks ago, Thompson Aero announced 180 job losses, one quarter of the workforce, in a devastating blow to the local economy. Each of those jobs is someone’s livelihood—the means to pay their mortgage, feed and clothe their family and to secure their future.
Although the support provided by the Government to the sector has been welcomed over the past year, I know from a conversation I had with the industry yesterday that what it really desires more than anything is an indicative date of hope—a date for when international travel will be allowed once more. That will be the kickstart that the industry requires for the businesses to make money, generate cash flow, and support the jobs of tens of thousands of people once again. We have to get to that point soon because businesses are at breaking point right now. With no clarity and constant knock-backs, their sustainability becomes more difficult day by day. We need to do this safely and sustainably, as stop-start will only cause more problems for the industry. I believe we can do this now, and I urge the Transport Secretary and the global travel taskforce to provide this pathway.
It is a pleasure to serve under your chairmanship, Dr Huq, and thank you for your leniency in letting me leave slightly early this afternoon.
I am grateful to be called in this important debate, not least because, like most hon. Members here, I joined the lobby yesterday and met constituents who had travelled to Westminster. I wanted to show my support for the travel industry in these challenging times. It was a lobby that highlighted yet again that the UK travel industry has had to deal with extremely tough impediments, more than most industries, and needs our support.
Today’s debate comes in the midst of what is still an incredibly challenging time for businesses and workers in the travel and tourism industry. Analysis from ABTA—The Travel Association estimates that 195,000 people working in the travel industry have either lost their job or are at risk of losing their job due to the crisis. Considering that the sector employs around 526,000 people across the UK in normal times, we are looking at the livelihoods of more than a third of the people in the industry being wiped out.
I will focus my remarks on smaller travel businesses, which feel forgotten and are staring into the unknown. Office for National Statistics figures show that revenue for travel agents and tour operators have been down 86% to 90% each month since February 2020, with no specific sector support forthcoming from the Government and limited access to more general grant support measures. ABTA estimates that around 60% of SME travel agents will not have the cash to survive for more than three months, based on current trading conditions and the Government support that is available at the moment.
Last week, I visited Karen Marin Reyes and the team at La Vida Travel in Newport East. La Vida Travel is an award-winning business with a loyal local following and a reputation for very good customer service. Karen, who was here in Westminster yesterday for ABTA’s day of action, spoke to me about the difficult outlook her business and the sector faces, and echoed all the calls for sector-specific financial support for the travel industry, which remains busy but is struggling to make money in the face of very low new bookings and cancellations.
I congratulate my hon. Friend the Member for Crawley (Henry Smith) on securing this debate. He was spot on with his remarks about Wembley, much as I want us to win that match on Tuesday, and I also agree with the remarks made by my hon. Friend the Member for Bexhill and Battle (Huw Merriman), the Chairman of the Transport Select Committee. We do have an airport in Southend, which is very popular; I always have to balance that with the complaints about damage to the environment and night flights, but I am very proud of it.
I want to concentrate briefly on the tourism sector. A major aspect of the tourism industry is that it is seasonal, and Southend is a coastal town where the local economy thrives in the summer. With the extension of restrictions, many businesses in the tourism and hospitality industries will continue to suffer despite the recent warm weather. The Government have undoubtedly provided generous financial support packages, but many limited company directors and businesses in my constituency have frankly been left to fend for themselves. I ask the Government to implement a robust recovery strategy in the travel and tourism industry as we return to some sort of normality.
I have spoken to concerned business owners in my constituency who rely on tourists to eat in their restaurants, drink in their pubs and stay at their hotels. Grants were welcomed by many of my constituents, but they did not cover the fixed costs of operating small businesses, and those businesses do not, unfortunately, have the reserves to survive much longer. Many of them are running at a loss. The Government should provide further support in the form of extending the reduced rate of VAT and the business rate relief.
However, it is not just the hospitality industry that relies on the influx of tourists: it is the leisure and entertainment industries as well. Being a popular seaside town, Southend would normally attract plenty of tourists to our wonderful summer festivals and theatres, for example. Southend carnival has been cancelled this year, and the Leigh regatta, the Leigh Folk festival and the Village Green festival have all been postponed, which damages the local economy. I say again that, when coronavirus lockdown measures come to an end and restrictions are fully lifted, the Government should provide support to local authorities to help them cope with the influx of people to tourist hotspots such as Southend.
It is a pleasure to serve under your chairmanship, Dr Huq, and a pleasure to follow my hon. Friend the Member for Southend West—in the new city of Southend—(Sir David Amess). I pay particular tribute to my hon. Friend the Member for Crawley (Henry Smith) for the work he has done to champion this issue. Like him, I have a great interest in aviation because of the close proximity of Manchester airport to my constituency: obviously in his case, it is Gatwick. Around 3,500 people living in my constituency work at that airport, not just as pilots and cabin crew but in all the ancillary services—the catering services and engineering services—that generate business and provide employment for people who live in my constituency. It is those people who I am speaking for today.
Actually, I have already spoken quite a few times in the House on this matter, because it is an incredibly important issue for our economy. This is a critical sector, not just for my constituency of Warrington South but for all of our regional economies. It is really interesting that Members from every part of the United Kingdom have attended the debate, demonstrating the critical issue that we are all facing.
In Parliament Square yesterday, the pilots, cabin crew, travel agents, catering staff and all those in the wider supply chain, who are desperate for the industry to make some progress, had some incredibly compelling messages. More than 1.5 million people are employed in the aviation, travel and tourism sectors, and the cabbies are really feeling it as well. I cannot say how many times I have got into a taxi in London and the first thing the driver has talked about is the lack of tourists in the city and how it is impacting on their livelihoods. Sadly, many of the people working in the sector have already lost their jobs, and so many are still on furlough. We know that the aviation and travel sectors make their money during the summer in order to survive through the winter.
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The title of the debate refers to support for the travel and aviation sectors. The best way to support them is to allow them to meaningfully and safely operate. If that cannot happen, I am afraid the bill for unemployment benefits this coming autumn and winter will be a significant burden to the taxpayer. Many companies and employers in the sector will be coming to the Government asking for bailouts. Far better that we let the industry recover and make money for the UK Exchequer, whose bills are already significant, than cost it some more.
I pay tribute to the Government for the world-leading vaccination programme over the past six months. We were told just before Christmas that if we had a successful vaccination programme, that would allow us our liberty and enable us to get back to much more normal life. Yesterday, we hit the target of 60%-plus of people across the country who have been doubly jabbed with covid-19 vaccines. I fear that we are squandering the vaccine dividend that we were told would allow us far greater freedoms once again.
We are, quite simply, at a competitive disadvantage. Many countries in the EU and the world are allowing a far greater number of countries to be travelled to, particularly for those who have received full covid-19 vaccinations. This is not just about two weeks on the beach in a sunny environment, nice though that is. It is about global Britain and us being a trading nation. For every day that there is not meaningful transatlantic travel between the UK and the US, an estimated £32 billion is lost to the British economy.
I welcome and support the Government’s traffic light system for international travel. It is absolutely right that for parts of the world where cases of covid-19 are still unfortunately far too high, we must protect ourselves against that and new variants. I support those quarantine arrangements, but for countries that have had a similar vaccination roll-out success and similar or lower infection rates than the UK, we need to have a much more pragmatic regime for amber and green list countries.
I welcome the fact that the Government are reportedly looking at requiring those who are fully vaccinated and travelling from amber countries only to test, rather than to quarantine at home. That would be very positive, but I think we need to go further. We need to expand the green list of countries—I welcome reports that it will be announced later today that Malta and the Balearic Islands will be added to that list—but the list needs to be far wider than that.
The cost and complexity of covid-19 testing for international passengers is a major disincentive for people to travel. For a family of four, it really becomes prohibitive. It is ridiculous that many tests are more expensive than the flight itself. Perhaps more rapid antigen testing for lower risk countries would be appropriate, particularly if we are also dealing with people who are fully vaccinated. If there is a positive test, they can have a PCR test to back that up. It is interesting that, of those who have been tested who have been able to travel, less than 1% have proved positive in that test.
This is about people’s jobs and livelihoods. It is not just about going on holiday. Airports are likely to lose a further £2.6 billion if we do not see meaningful opening up. We are losing about £60 million in exports throughout this period because we do not have people able to visit this country and spend their money here.
Finally—I want to make sure that as many colleagues as possible can take part today and I am grateful to hon. and right hon. Members from all parts of the country and across the House for contributing to this important debate today— I want to comment on where respect for the restrictions is beginning to seriously break down. We hear that Wembley will be three quarters full for the Euros final, because an exception will be made for VIP guests from UEFA to come to London. I do not mind Wembley being near capacity. I welcome that easing of restrictions, but what is not right is to have one rule for VIPs and another for everybody else. When parents cannot go to school sports days, VIPs should not be able to come to Wembley.
The answer is to open up in a realistic and pragmatic way, to save jobs and recover our economy from the devastating effects of covid-19. The best way to support the travel, aviation and tourism sectors is to allow them to operate, save those jobs and make money for our economy, rather than them being yet another burden on every taxpayer for years to come.
If the Government were really basing their decisions on data and public health, there would already be more countries on the green list and there would be a significant expansion of that list today—and not only places such as Malta, Madeira or the Balearics, as briefed by someone in Government for today’s newspapers, but Italy, Germany, Finland, the Greek and several Caribbean islands, and many other countries currently on the amber list that all now enjoy a fraction of Britain’s covid rates. If the Government do not do this, we will know their decisions have nothing to do with the data or public health, and everything to do with politics and control.
We have seen that in the UEFA decision. It is completely outrageous for the Prime Minister to grant an exemption to our quarantine rules for thousands of bigwigs from European football when he is actively preventing ordinary British families from seeing loved ones abroad or from simply having a holiday, destroying thousands more jobs in an industry already on its knees in the process.
I am beginning to think that the Prime Minister does not want British people travelling abroad this summer because they will see how life in other countries got back to normal and that those countries are freer than us, despite our much-vaunted vaccine dividend. Many of our European neighbours have been free to travel since Easter, and now Americans can too. From next week, every EU citizen will be able to travel freely—with a vaccine, a negative test or proof of infection—using the green card system, and Americans are already flocking back to their favourite destinations in Europe, although of course not to here. Our Government are only just now talking about the possibility of a vaccine passport— allowing people to travel without quarantining if they have a vaccine. We are less free than our neighbours, we are less free than Americans and we are less free than we were last summer, in spite of being the most vaccinated country in Europe after Malta.
Even with this high level of vaccination and immunity, if we are to remain closed for fear of an as yet unknown new variant, we will never unlock. My right hon. Friend the Member for Wentworth and Dearne (John Healey), the shadow Defence Secretary, told Sky yesterday that we need to restart travel again as soon as possible, and he warned that Britain is getting left behind. He was absolutely right. I hope that signals a change in in my own party’s policy. Regardless of that, the Government, who are responsible for this, need to do the right thing, let the British people travel safely again and throw the thousands and thousands of fantastic people who work in our transport and travel sectors a desperately needed lifeline. Let them get back to work before it is too late.
I could go on and on with all the emails that I have received, but this is not just about holidays, as people sometimes say—although what is wrong with going on holiday? People’s lives are being ruined. Their mental health is being put at risk because of a ridiculous and restrictive policy that appears to have no basis when we look at the data. Let us look at what has happened with the traffic light system and travellers returning to the UK. Analysis of the latest figures from NHS Test and Trace found that only 89 of 23,465 passengers who travelled to the UK from amber list destinations between May and June tested positive for coronavirus—a rate of 0.4%. There are 167 countries on the amber list, and there were no positive cases from 151 of those.
If the Government look at the data, it surely demonstrates that going abroad is safe when we consider the amount of covid on these shores. It has positive benefits not just for people, but for our international trade and our economy. As my hon. Friend the Member for Crawley has stated, it is worth billions to the economy. What will actually pay for our NHS and our vaccination programme? International travel and international trade.
I will be particularly interested to hear the Labour Front-Bench spokesman’s speech and whether he will talk about why the sector needs aid and a specific sector-based deal. He might be better placed to call for his own leader and shadow Home Secretary not to ditch the amber list and move all those countries to red, because that will just put more and more people on the scrapheap when it comes to their jobs.
Dr Huq, I have taken my four minutes, but I could go on for four hours. I am absolutely sick and tired on behalf of all the people who want to get their lives back safely and travel abroad, and the workforce I met yesterday, who care so passionately and are so positive about their sector and their customers. Let us give them their opportunities back, take a bit of a risk, cash in on the vaccine dividend, and allow people to travel internationally again.
The vaccine roll-out is our passport to restart travel. It is proven that the vaccine is of huge benefit to people, and therefore we need to go forward and get travel opened up again. We also need clarity around travel. A lot of constituents are confused by the mixed messaging, and this is also inhibiting travel. Now is the time to act, before it is too late for jobs and much-valued local businesses.
Companies such as La Vida Travel were not able to shut their doors when the pandemic came; they were busy helping their customers, including processing many cancellations and rebookings. Like all hon. Members, having helped constituents abroad to get home during the first months of the pandemic, I do not underestimate how stressful that is for clients and the staff helping them, or the sheer amount of work involved. These businesses were also having to foot the bill for transaction charges from credit cards, debit cards and banks, which are not refunded to the travel agent. I would like the Minister to look at that specific point, because they are carrying that loss themselves.
Travellers typically book six months ahead, so there are long delays in receiving payments made for bookings, which are only received a few months before the date of travel. These companies do not see the money for many months. For bookings that are being made now for next summer, the travel agent will receive payment in the spring at the earliest. Because of lack of confidence, many travellers are unwilling to pay in full for holidays next year because of the uncertainty. I note the comments made by other Members about the need for consistency in travel advice. My right hon. Friend the Member for Exeter (Mr Bradshaw) made a strong contribution about that; we need confidence in the Government’s system.
The knock-on effect of all these factors is a shortage in cash flow that is especially pronounced for smaller travel businesses, especially as they make their money to survive through the winter in the summer. They need more help with the loans that they are due to pay back, because many just do not have the money at the moment to start making payments.
We need the Government to step up and do better. As others have said, it is not just about holidays; it is about people’s jobs and livelihoods.
As chair of the all-party parliamentary group on Qatar, I have seen how helpful Qatar Airways has been to our country during the pandemic, transporting over 100,000 people safely back to the United Kingdom, and I say a big thank you to them. Qatar Airways is heavily suffering, and that country is on the red list despite having relatively few coronavirus cases compared with other countries, and despite a high proportion of its population having been vaccinated.
In conclusion, there are so many reasons why Southend should become a city next year. We are a cultural hub with a plethora of charming local boutique shops and brilliant stores, and if it is not being greedy, I think we should be the city of culture as well. Southend attracts many visitors each year to our beaches, our theatres, and the world-famous Southend pier. Tourism is a major part of our diverse economy in Southend, and while it will play a part in gaining us city status, the individuals and businesses who comprise the industry need urgent governmental support to recover from the pandemic.
As furlough comes to an end in September, we need to look carefully at how we extend the support for the sector if travel is not possible, so that it can generate income through the winter months. The lost summer, which I fear it will be, will cost our economy somewhere around £19 billion. I mentioned earlier my relationship with Manchester airport, and we have rightly heard lots about airports. Manchester airport is the engine room for the northern powerhouse, and we need to do everything we can to support it and get it back up and running.
I want to spend my remaining time by talking about some of the microbusinesses in my community that really rely on the sector. I listened to the hon. Member for Newport East (Jessica Morden) talk about travel agents in her constituency, I am hearing about exactly the same issue from travel agents in my constituency. Adrian Harper, who owns a travel agency in Lymm, talked to me last week about consumer confidence being shattered. As we heard earlier, the sector has gone through massive structural change and disruption through the arrival of global competitors such as Expedia, which has changed the nature of the business. It has not just damaged the business in the short term; it has made a massive change. The clientele—predominantly now a base of older people—need to be able to plan for the future, and they have no certainty about what will happen in the months and years ahead. These are not people who want to jet off to Ibiza with a week’s notice; they are planning six to 12 months ahead, and sometimes years in advance, for worldwide cruises and trips to see family on the other side of the world. One of the key issues that the sector faces is that, due to low consumer confidence, people are booking, cancelling, rebooking and everything else in between. That is impacting significantly on the cash flow and income of small businesses.
I am looking forward to the announcements due to be made later this evening by the Secretary of State for Transport. I very much hope that we will see some advances in terms of the green list, and I look forward to giving the industry the chance to get back on its feet.