Economic Contribution of Outbound Travel
New research from ABTA, The Travel Association, reports that outbound travel now contributes £57 billion annually in Gross Value Added (GVA) to the UK economy. The sector supports 865,000 jobs nationwide. This reflects a 9.6% increase in economic contribution and a 5.7% increase in employment since 2019, despite the COVID-19 pandemic.
The report, titled ‘Outbound Travel – driving jobs and growth across the UK,’ highlights that the outbound travel industry is responsible for millions of holidays abroad each year and plays a significant role in supporting jobs and economies in regions and nations throughout the UK.
Regional Distribution of Economic Benefits
According to the report, the economic and employment benefits of outbound travel are distributed across the UK, with regional areas seeing the highest proportional impact. The North East of England contributes the most as a percentage of all economic activity (GVA) at 2.6% and ranks second for employment, with 2.5% of all jobs in the region connected to outbound travel.
The top five regions for GVA contribution are the North East, East Midlands, North West, West Midlands, and Yorkshire and the Humber. For employment, London leads with 2.6% of all jobs in the region linked to outbound travel, followed by the North East, North West, East of England, and West Midlands (all at 2.4%).
The report also notes that regions outside London have a higher share of economic activity from overseas travel than the capital. For example, the North East’s outbound travel sector accounts for 2.6% of economic activity, with the North West, West Midlands, Yorkshire & the Humber, and East Midlands each at 2.4%.
Industry Challenges and Government Policy Requests
The report was released at the start of ABTA’s Travel Convention in Madeira, where industry leaders discussed sector opportunities and challenges. The industry faces several challenges, including geopolitical instability, rising fuel prices, climate-related events such as wildfires, and the implementation of Europe’s new digital border scheme, the Entry/Exit System (EES).
ABTA is calling on the government to partner with the industry to address these challenges and support continued growth. The association’s policy recommendations include:
- Freezing Air Passenger Duty (APD) for the duration of the current parliament and removing all children from the tax to help families and facilitate growth.
- Reviewing business rates for high street travel retailers to support businesses with physical premises, as many saw rates increase after COVID-19 relief ended.
- Completing a UK-EU youth experience scheme agreement to address a 69% decline in UK nationals taking tourism roles in the EU since Brexit.
- Securing reciprocal agreements with the EU to facilitate educational travel, including exemptions from digital border regimes for school trips.
- Working with industry to ensure that reforms to vocational qualifications maintain clear pathways into travel and tourism careers.
Affordability, Decarbonisation, and Infrastructure
The report also addresses the need to keep travel affordable as the industry transitions to lower carbon operations. ABTA recommends regularly reviewing the UK’s Sustainable Aviation Fuel (SAF) mandate to avoid steep increases in airline costs. Modernisation of UK airspace is identified as a key measure to reduce the sector’s carbon footprint and improve efficiency.
For the cruise sector, the report calls for government action to reduce the cost of connecting ships to shoreside power and prioritise port connections to the electricity grid, supporting emissions reductions.
Consumer Trends and Cost of Living
The ABTA Holiday Habits report for 2026-27 indicates that 15% of respondents plan to spend less on holidays next year, with 52% citing the cost of living as the main reason, up from 47% the previous year. This trend highlights the importance of measures to keep travel affordable for consumers.
The full report is available at www.abta.com/outboundtravel2026.