ABTA – Written evidence (FTS0022)

Introduction

ABTA is the largest travel association in the UK, with around 1,000 Members operating from more than 4,000 locations across the country. Our Members range from small, specialist tour operators and independent travel agencies specialising in business and leisure travel, through to publicly listed companies and household names, from call centres to internet booking services to high street shops. Combined, ABTA’s Members have an aggregate annual turnover of more than £40bn.

The flow of visitors from the UK to the EU Member States is a vital component of the UK’s vibrant outbound travel industry, which overall is worth more than £37.1 billion a year to the UK economy, accounting for around 1.8% of GDP, and supports a total of 526,000 FTE jobs across the UK.[1] Outbound tourism from the UK also directly sustains over 425,000 jobs across the EU and EFTA members, and in total UK travellers support just over one million jobs on aggregate through travel and tourism supply chains.[2] UK trips to Europe also directly generate €15bn a year in GVA for EU and EFTA economies, and support an aggregate impact of more than €41bn.[3]

In 2019, almost 67 million outbound trips were taken by UK residents to the EU, for both leisure purposes (holidays or visiting family and friends) and for business, accounting for every 7 in 10 UK visits overseas.[4] There are longstanding and resilient travel links between the UK and our closest neighbours in Europe, and UK travellers contribute to employment and economic prosperity in recipient countries, as well as at home. The various motivations for travel demonstrate the continuing reliance and inter-dependence of our economies and the importance of preserving, and indeed rebuilding, travel following the twin challenges of the UK’s departure from the European Union and COVID-19.

Response to the UK-EU Trade and Cooperation Agreement

The conclusion of the UK-EU Trade and Cooperation Agreement was a welcome step for the travel industry, avoiding the additional uncertainty and disruption that would have ensued in the event of a no trade deal scenario for both businesses and individuals. In particular, the commitment to visa-free travel for short-term leisure and business purposes was positive. We were also pleased to see that some of what ABTA has been calling for since the EU referendum in June 2016 has been reflected in the new Agreement, and more than anything it provides us with initial clarity around some key areas for travel, such as transport links, reciprocal healthcare, and data flows (at least initially).

However, it is important this agreement is used as a platform to build upon to reach creative solutions that preserve arrangements that have played an important role in underpinning the industry, and which provide clear mutual benefits. Outlined below are some of the key issues which remain either unresolved, or have only been temporarily resolved, that the UK Government needs to address in the coming months and years.

Posted workers[5]

The main risk of possible disruption for travel businesses is currently in relation to employment, particularly in the context of the loss of the Posted Workers Directive, which in normal circumstances enables the posting of 15,000 UK workers each year into the EU.[6] The trade deal itself does cover Mode IV provisions for the temporary entry of services workers, including those in tourism, but the maximum length of stay is 90 days in any 180-day period, which is quite restrictive given that most tourism postings would be between 6-9 months, and there are a variety of national exemptions and rules that need to be accounted for. There is a provision in the new Agreement which enables Member States to keep the existing social security elements for ‘detached workers’ for up to 15 years, should they notify the Commission of their intention to do so by the end of January. ABTA has been engaging with Ministers in each of the main tourism destinations to encourage them to take up this provision, and we believe that all 27 EU Member States have now done so, which would be positive news for the travel industry. However, this is yet to be officially confirmed, and even if EU Member States do unilaterally retain the social security elements of the Directive, it is important to note that this does not negate the need to obtain work permits and/or visas in future for UK-based staff.

When seeking clarity and reassurance around the limitations of the GATS Mode IV approach, ABTA has been advised that it would be up to each Member State to adopt rules that are more permissive for UK nationals within their individual domestic immigration regimes. In the long run, however, an extension of the Youth Mobility Scheme to the EU Member States could also help to alleviate the effects of the loss of the Posted Workers Directive.

The Youth Mobility Scheme – Tier 5 visas

The UK already operates the (Tier 5) reciprocal Youth Mobility Scheme covering several countries, including Australia, which enables young workers (18-30 years old) to move between the signatory countries to find work for a period of up to two years. Youth mobility schemes recognise the significant cultural and economic benefits of enabling young people to live and work abroad for temporary periods. Extending the Youth Mobility Scheme to EU countries, on a reciprocal basis, as well as similar schemes with other countries that the UK is seeking trade deals with, could provide a useful employment route for so-called “low-skilled” workers into travel and tourism, especially as the industry has a significantly younger workforce than the UK average. It would also align with the Government’s intention not to discriminate on the basis of nationality within the UK’s new Points-Based Immigration System.

The existing Youth Mobility Scheme covers workers up to the age of 30 (at application). In future, ABTA would urge the Government to consider increasing the age limit for the initial application, ensuring the schemes can cover all workers under 34 years old to provide access to a wider pool of young workers. We would also urge the Government to consider extending the period covered for work to four years.

Given the restrictions on general mobility outlined above, the importance of extending the Youth Mobility Scheme to EU Member States has greatly increased for the UK outbound tourism industry, as well as inbound operators who benefit from the language skills offered by EU nationals. Without the additional flexibility that could be offered by an extended Youth Mobility Scheme, it is difficult to see how many UK outbound and inbound tour operators can avoid serious disruption to their operating models in the coming years. ABTA highlighted this solution, along with a number of other potential arrangements that could provide the operational flexibility travel and tourism businesses need, in a report ‘Securing the Future’ published in 2020.[7]

Mutual recognition of qualifications

Directive 2005/36/EC enables certain professionals to rely on qualifications obtained within another EU Member State when seeking the applicable employment elsewhere across the EEA. For example, certain tour guiding services, including ski guides and bike guides in some Member States, are covered by the Directive. This Directive no longer applies to employees of UK registered businesses. Under the Withdrawal Agreement, recognition decisions made on qualifications obtained in the UK or the EU on or before 31 December 2020 are not affected. The EU-UK Trade and Cooperation Agreement does not contain provisions on the continued applicability of the framework on the Mutual Recognition of Professional Qualifications, however, there is a commitment to looking at this as a potential area for future agreement, which ABTA would strongly encourage.

Reciprocal healthcare

The EU-UK Trade and Cooperation Agreement also contains provisions to temporarily retain the validity of European Health Insurance Cards (EHICs) that have been issued to UK nationals, until their natural expiry, while talks continue on the establishment of an alternative document for proof of right to obtain healthcare. Some individuals may be able to apply for a new UK-issued EHIC if they are covered by the Withdrawal Agreement (such as EU/EEA citizens, frontier workers etc). Under the terms of the Withdrawal Agreement, a new UK-issued EHIC also covers individuals for necessary healthcare from state services in Norway, Iceland, Liechtenstein and Switzerland. The original UK EHICs do not work in these four countries, however. The UK is seeking bilateral agreements with those countries, but in the meantime there is a gap in coverage (with the exception of Norway, with whom the UK has already reached a bilateral agreement).

Transport links

The UK-EU Trade and Cooperation Agreement includes an agreement to maintain point to point air traffic between the EU and UK, with third and fourth freedoms granted to airlines from either party. This should ensure the vast majority of leisure flights are maintained.

The Channel Tunnel is operated under the Treaty of Canterbury, which was signed by France and the UK when the Channel Tunnel was conceived; this sets out that both countries will facilitate as frictionless travel as possible through the Tunnel up until 2086. However, the Intergovernmental Commission that was established to govern this arrangement will no longer be recognised by the EU from the end of the transition period. As such there is a need for renewed regulatory agreement to ensure that passenger services can continue to operate uninterrupted after the transition period. The European Commission adopted, on 27 November 2020, a proposal for a Regulation that ensures the Channel Fixed Link continues to operate after 1 January 2021, until other arrangements have been put in place. The UK-EU Trade and Cooperation Agreement does not cover an agreement relating to this mode of transport, however, the EU Member States delegated authority to France to reach bilateral agreement with the UK on future operations, and talks are continuing.

Data protection

In terms of data, while the European Commission has yet to issue an adequacy decision for the UK, the Agreement contains provisions to enable data to continue to flow uninterrupted, and without the need for UK companies to use Standard Contractual Clauses. This provision is initially for four months, but can be extended to six months at the discretion of the European Commission. It is vital that the UK and the EU come to a more permanent arrangement quickly to avoid possible disruption later this year.

Financial protection

The Package Travel and Linked Travel Arrangements Regulations 2018, as amended by The Package Travel and Linked Travel Arrangements (Amendment) (EU Exit) Regulations 2018, continue largely unchanged in UK law post-Brexit. As a result, the obligations to consumers under the regulations remain unchanged. However, any financial protection arrangements put in place under the regulations will not automatically provide protection for sales to consumers outside of the UK. The position is the same under the ATOL Regulations. The main consequence is that the mutual recognition arrangements in relation to insolvency protection fall away. Under the 2018 Package Travel Directive, organisers established in the EU are obliged to provide securities against the possibility of the organiser’s insolvency. Organisers not established in the EU which sell or offer packages to EU consumers must provide this protection in every Member State where they are selling. From 1 January 2021, EU law providing for mutual recognition of insolvency protection taken out in accordance with the requirements of the home country of an organiser will no longer apply with regard to UK insolvency protection. This will have no effect on UK established organisers selling to UK consumers. However, UK established organisers selling in the EU will not be able to rely on their ‘home country’ protection.

Sanitary and Phytosanitary regulations

UK-based travellers are no longer able to take any meat, dairy or any products containing these items into the EU, although there are exceptions for powdered baby milk, baby food, or pet food required for medical reasons. All third country arrivals into the EU must also provide a phytosanitary certificate for all fruit, vegetables, plants and plant products intended for personal consumption when entering the bloc. The only exceptions to this rule are bananas, coconuts, dates, pineapples, and durians. While this does not necessarily provide a barrier to travelling, in that failure to comply should not lead to refusal of entry, it will require UK nationals to be educated on the increased requirements upon them when travelling to ensure compliance with entry requirements.

Pet passports

EU pet passports are no longer be valid, instead travellers now need an Animal Health Certificate and their pet has to be microchipped and vaccinated against rabies before travel to the EU. This requires a visit to veterinarians at least ten days before travel, and failure to comply could result in denial of entry.

Conclusion

UK outbound tourism has positively impacted lives, stimulated economic growth, provided jobs and supported businesses for decades throughout Europe. As the UK and EU embark on a new relationship, ABTA’s message to policymakers in Westminster, Brussels and the national capitals across Europe, has remained clear and consistent: we must strive to preserve the benefits of travel, both economic and also cultural – for the latter are harder to quantify, but equally valuable. While the benefits of travel might seem evident, recent events have also shown us they should not be taken for granted. We must continue to be proactive, and collaborative, in our approach to create the conditions that allow the industry to flourish and enable all our citizens to continue to travel with confidence.

To that end, it is vital that arrangements are put in place in the coming months to provide operators with the ability to send UK workers to destination countries in time for the peak summer season. There are a number of options for how this could be achieved, including bilateral agreements to provide reciprocal access to labour markets for tourism workers, or the extension of the Youth Mobility Scheme to major European destinations – which aligns with the UK's stated immigration policy to offer similar access to all nationalities. In reality, these roles should not be considered as immigration in the traditional sense, as they are temporary in nature. However, they play a critically important part in the success of the UK outbound travel industry.

February 2021