Our response to three key travel industry developments

Last week, Advantage Travel Partnership responded to three significant developments affecting travellers and the wider travel industry. Julia Lo Bue-Said OBE, CEO of Advantage Travel Partnership, shared the organisation’s position.

Outcome of NATS report following air traffic control outage

Following the latest NATS report, Julia commented on the impact of last week’s air traffic control outage and the need for greater resilience.

“Today’s NATS report confirms that a software defect in its flight-processing system triggered last week’s air traffic control outage.

While we are grateful that safety was never compromised, the scale and duration of the disruption had a devastating impact on hundreds of thousands of passengers, airlines, airports and the wider travel industry. Holidays were disrupted, important business meetings were missed, and people lost precious time with family and friends.

The failure will carry a significant economic cost, and it is simply unacceptable for passengers and the industry to be left to pick up the bill.

The findings from this failure must now translate into meaningful improvements, and we need NATS, alongside Government and the CAA, to ensure that the lessons from this incident translate into meaningful improvements in resilience and contingency planning.”

Proposed UK Inbound Tourist Tax

Following news of the proposed tourist tax, Julia outlined the potential consequences for domestic visitors, business travel and the wider UK economy.

“The proposed tourist tax risks alienating domestic visitors and placing further pressure on businesses at a time when households and employers are already feeling the pinch. Its impact would extend far beyond increasing the cost of essential business travel, and potentially changing decisions about whether trips take place, how long people stay and where meetings and events are held.”

There is also a question of fairness in the current proposals for a percentage-based charge. Accommodation prices vary significantly across the country, and business travellers staying in a London hotel could pay substantially more tax than someone making an equivalent stay in another UK city, compounding existing regional price differences and creating an uneven burden based on room rates rather than the actual impact of a visitor’s stay.

Business travellers support hotels, hospitality venues, transport providers and countless local businesses, while enabling the meetings, investment and commercial relationships that keep the wider economy moving. At a time when the UK is competing internationally for both visitors and investment, we should be encouraging people to come, stay longer and spend more, not creating another cost that may discourage valuable visits.”

Maldives government's new tax rules

Speaking as CEO of Advantage Travel Partnership and Founder of UK Outbound Travel Group, Julia also addressed concerns about the Maldives government’s new tax rules.

“We are deeply concerned about the aggressive new tax rules announced by the Maldives government, which are due to come into effect on 1 October and could have a significant impact on UK travel agents and tour operators selling holidays to the Maldives.

We have been liaising closely with colleagues across the UK Outbound Travel Group and join the wider industry in calling for the implementation of these measures to be delayed while the Maldives government provides greater clarity on how the new rules will work in practice.

An international tourism industry meeting with the Maldives government this week did not provide the clarity the industry was seeking. Until the mechanics and implications of the new rules are fully understood, this uncertainty will create significant anxiety for businesses selling and promoting the Maldives and, ultimately, for consumers planning holidays there.”

As the Maldives’ third-largest source market, the UK is a vital contributor to its tourism economy. Penalising British businesses risks biting the hand that feeds them. With Russia and China currently their two largest source markets, it would be interesting to see whether the same approach would be taken with them. The strength and value of the UK market should not be underestimated.”