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    Scottish travel agents set to benefit from new business support

    Businesses across Scotland are set to benefit from a new £185 million package of targeted Covid-19 support.
    The announcement follows discussions with business groups and sees a wide range of sectors benefiting, from taxi drivers and arts venues to travel agents and hospitality.
    In addition, there will be additional one-off payments to hospitality businesses in January to help them deal with the traditional post-Christmas dip in demand.
    These will be of £2,000 or £3,000, depending on rateable value.
    The package was announced by finance secretary, Kate Forbes, who also said she had written to the treasury calling for Scotland to receive its share of rates relief reimbursed by supermarkets “to ensure this is spent on those areas hardest hit as part of Scotland’s recovery from Covid-19”.

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    The move was welcomed by the industry, which argued it should be extended to include the whole UK.
    An ABTA spokessperson said: “We are pleased to hear that the Scottish government has listened to our calls for financial support for the travel industry.
    “Scottish travel businesses have been struggling since the start of the pandemic – the restrictions on travel meaning they are unable to generate income, so this news will come as a relief to many ABTA members.
    “It is also a really important move in supporting the Scottish economy, recognising that the outbound travel industry contributes £2 billion every year to the economy of Scotland and the role travel will play in the country’s economic recovery.”
    The spokesperson added: “While this is great news to travel businesses in Scotland, we know that many of our members across the UK are currently still struggling to access the much-needed funds to keep them afloat.
    “We will continue to make the case for travel businesses across all the UK with the appropriate administrations.”
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    TUI reports €3.1bn loss but looks to brighter 2021

    TUI Group has reported a total loss of €3.1 billion for financial 2020 as the Covid-19 pandemic sweeps across the world.
    The figure was a huge decline on the profit of €532 million seen last year.
    The travel giant saw revenue of €7.9 billion, down 58 per cent from the €18.9 billion reported in 2019.
    However, TUI sought to put a brave face on the results, arguing the corner had been turned at that next summer was looking a lot brighter.
    The company said average prices were up 14 per cent for next year, while bookings were three per cent higher than for summer 2019.
    Demand for travel is also rising, TUI said, with 50 per cent of the programme for May next year already booked.
    TUI Group chief executive, Fritz Joussen, said: “The pandemic is not over, but there is light at the end of the tunnel and the prospects for tourism and for TUI are good.

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    “The demand for holiday travel is there – consumers in all age groups say that travelling is one of the most missed activities for them in the Corona year.
    “Next year will be a transition year for tourism, and 2022 is expected to see a return to pre-Corona levels.
    “In particular, the holiday sector will recover faster than the sector as a whole.”
    The first five months of the 2020 financial year (October 2019 to February 2020) were very successful for TUI, with a record booking increase of 14 per cent in January.
    In mid-March, the group had to completely discontinue all travel activities due to a series of worldwide travel warnings.
    The tourism group was only able to generate revenue again when it was able to fly its first holiday guests to Majorca in mid-June in a pilot project and a limited resumption of operations from July onwards.
    Greece was particularly strong as a holiday destination in 2020.
    Joussen added: “The rapid measures to cut costs and secure liquidity are important for the group.
    “They are a stable foundation for the future.
    “TUI was in perfect health before the crisis and we want to return to our former strength as quickly as possible.
    “The market is intact, our business model is future-proof and customer demand is there.”
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    WTTC warns over Brexit no-deal job losses

    The UK government and the EU must agree a deal over Brexit to save and secure thousands of jobs, argues the World Travel & Tourism Council (WTTC).
    WTTC, which represents the global tourism private sector, has urged the two sides to come together to find a way to reach a consensus for a post-Brexit trade deal as talks enter their eleventh hour.
    The plea comes as UK prime minister, Boris Johnson, is due to meet in Brussels with European Commission president Ursula von der Leyen to try to break the logjam.
    WTTC says tourism businesses in the UK and across Europe could be in jeopardy and put at risk thousands of businesses and the jobs of those who depend upon them if there was failure to secure a way forward.
    Before the pandemic outbreak, WTTC had warned that 300,000 tourism jobs in the UK and almost 400,000 across the EU could be at risk if the UK left without a deal.

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    With a no deal Brexit, access to markets and the ability of business travellers and holidaymakers to move freely between the UK and the EU could be lost, creating complexity, cost and confusion and impeding seamless travel.
    Flight connectivity is a major issue, with a UK-EU deal needed to replace the Comprehensive Air Transport Agreement which allows UK airlines access to 27 EU states and 17 other countries, due to expire on December 31st.
    While contingency measures are expected to enable flights to operate until a long-term deal can be reached, WTTC fears UK airlines could suffer if there is a no-deal Brexit.
    Those already reliant upon traffic with Europe, are under huge pressure due to the impact of coronavirus travel restrictions, along with thousands of businesses throughout the tourism sector.
    Gloria Guevara, WTTC president, said: “We urge the UK government and the EU to put the interests of the tourism sector, as well as the livelihoods of millions of people who depend upon it, at the forefront of their minds when considering the implications of a no-deal.
    “This has been an incredibly difficult year for the whole global tourism sector, which has left many businesses decimated and put millions of jobs at risk.
    “WTTC fears if a Brexit trade deal cannot be reached, it could compound the already difficult situation and be even more disruptive to the tourism sector both here in the UK and across Europe.”
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    Alpine Elements ceases trading in London

    Alpine Elements has ceased trading, with ATOL publishing advice on the next steps for passengers booked to travel.
    Around 1,000 trips are currently planned with the company, which is based in Wimbledon.
    Also trading as Elements Services London, the company specialised in skiing and winter holiday tours to France, Greece and Austria.
    However, following government guidance against foreign travel to some destinations and as a result of a number of flight cancellations, many consumers’ holidays were cancelled and, as a result, there are currently no consumers abroad on bookings with Alpine Elements.
    In a statement, ATOL said: “We are aware of a number of consumers whose bookings have been cancelled by Alpine Elements as a result of government advice or flight cancellations.

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    “Consumers that have accepted valid refund credit notes or are due refunds for the cancellation of their ATOL protected booking will be able to submit a claim to ATOL through our online portal.”
    For ATOL protected consumers that are due to travel after December 8th, flight tickets may still be valid, but this must be confirmed with the airline.
    If choosing to travel, consumers are advised they may be asked to pay again for replacement services of the original package holiday.
    However, provided the services are covered by ATOL, they are entitled to submit a claim for a refund.
    Replacement services may include accommodation, transfers or other services but consumers should confirm what was included in the package holiday on their ATOL certificate or booking documents.
    If consumers choose not to travel or their flight tickets are not valid, they will be able to make a claim.
    A spokesperson for ATOL said: “This is a particularly sad day for customers and employees of Alpine Elements, and we appreciate that those with bookings will be deeply concerned.
    “However, the ATOL scheme exists for exactly this kind of situation and we are making arrangements so that all ATOL protected customers can make a claim, whether they are due to travel or accepted refund credit notes for cancelled bookings.”
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    Discover Qatar launches new cruise offering

    Discover Qatar has announced the launch of its very first expedition cruise series.
    It will offer guests an experience travelling in luxury and comfort around the destination’s coastline.
    The cruises, which are designed for seasoned and adventurous travellers, provide a unique opportunity to observe the largest gathering of the world’s largest living fish – the Whale Shark – in the Al Shaheen marine zone.
    Whale Sharks, often referred to as ‘gentle giants’, are estimated to have existed for 60 million years.
    They can live up to 100 years and grow up to 12 metres in length – about the size of a large school bus.

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    Between the summer months of April and September, during their annual migration to the region, Whale Sharks are found feeding in groups of hundreds in the Al Shaheen marine zone within the Arabian Gulf, which lies 80 kilometres off the northern coast of Qatar.
    The Discover Qatar expedition cruise will give passengers the privilege of accessing the Al Shaheen restricted marine zone – a diverse ecosystem of immense natural beauty – to witness the majesty of the Whale Shark gathering, as well as a unique coastal exploration adventure.
    Discover Qatar is the destination management subsidiary of Qatar Airways.
    Qatar Airways Group chief executive, Akbar Al Baker, said: “Qatar is a unique setting for expedition cruises, and I am hugely excited to launch our first product in this area to show off our country’s beauty to the world.
    “Qatar, with its abundance of rugged, untouched nature, surrounded by crystal waters and a unique biodiverse ecosystem, offers exciting adventures that allow visitors to connect with nature and visit areas of Qatar that are only accessible by the sea.
    “Also, our guests will have the unparalleled opportunity to observe the biggest gathering of the world’s largest fish – the Whale Sharks.”
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    UNWTO report reveals further reduction in travel restrictions

    The number of destinations closed to international tourism has continued to fall.
    According to the eighth edition of the UNWTO Travel Restrictions Report, 70 per cent of all global destinations have eased restrictions on travel introduced in response to the Covid-19 pandemic.
    In comparison, just one in four destinations continue to keep their borders completely closed to international tourists.
    Launched by the World Tourism Organisation at the start of the pandemic, the Travel Restrictions Report keeps track of measures being taken in 217 destinations worldwide, helping to support the mitigation and recovery efforts of the tourism sector.
    For this latest edition, the methodology has been updated to offer insights into the tourism flows of destinations, as well as to explore the link between health and hygiene infrastructure, environmental performance and any potential connection to travel restrictions.

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    The report shows that, as of November 1st, a total of 152 destinations have eased restrictions on international tourism, up from the 115 recorded on September 1st.
    At the same time, 59 destinations have kept their borders closed to tourists, a decrease of 34 over the same two-month period.
    UNWTO secretary general, Zurab Pololikashvili, said: “The lifting of travel restrictions is essential to drive our wider recovery from the social and economic impacts of the pandemic.
    “Governments have an important part to play in giving data-led and responsible travel advice and in working together to lift restrictions as soon as it is safe to do so.”
    Looking further into current Covid-19-related travel restrictions, the report sheds new light on the factors connecting those destinations which have eased restrictions and those where borders remain closed.
    The study found that destinations with higher scores in health and hygiene indicators as well as on the environmental performance index are among those which have eased restrictions faster.
    Moreover, these destinations are increasingly applying differentiated, risk-based approaches to implementing travel restrictions.
    In comparison, destinations choosing to keep their borders closed tend to be within emerging economies with relatively low scores in health and hygiene indicators and environmental performance index.
    The majority of these destinations are in Asia and the Pacific, with many belonging to the SIDS (small island developing states), LDCs (least developed countries) or LLDCs (landlocked developing countries).
    As in previous editions, the new UNWTO Travel Restrictions report also breaks the destination analysis down by regions.
    Europe continues to lead the way in lifting or easing travel restrictions followed by the Americas, Africa and then the Middle East.
    Meanwhile, Asia and the Pacific continues to be the region with the fewest travel restrictions eased and more complete border closures in place for international tourism.
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    Thompson Okanagan Tourism Association declares climate emergency

    The Thompson Okanagan Tourism Association (TOTA) has declared a climate emergency as a signatory of Tourism Declares.
    The global tourism-specific initiative will bring together organisations and individuals from across the industry to take purposeful action and reduce carbon emissions.
    TOTA has committed to developing and publishing a comprehensive climate emergency plan within the next 12 months, including transparent goals, measurable reductions and yearly progress updates.
    “The climate crisis poses an immense threat.
    “Throughout Covid-19 recovery efforts, we must stay one step ahead to not only mitigate environmental impacts, but work toward transforming tourism into a force for good,” said Glenn Mandziuk, TOTA chief executive.

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    “Becoming a signatory of Tourism Declares is reflective of our regional strategy, Embracing Our Potential, which has led to this commitment to take climate action towards long-term, measurable results.”
    Like all signatories of Tourism Declares, TOTA has committed to five key actions, which includes accepting current advice of the Intergovernmental Panel on Climate Change (IPCC) stating the need to cut global carbon emissions to 55 per cent below 2017 levels by 2030, sharing a public commitment, and acting as an advocate for change and urgent action.
    TOTA intends to support the regional as well as wider travel and tourism sector through continued leadership efforts, accelerating the transition to a low carbon tourism economy.
    More Information
    The Thompson Okanagan Tourism Association is a non-profit society, governed by an elected board of directors, which represents business and community tourism interests throughout the region, and is supported by the British Columbia ministry of tourism, arts, culture, and sport.
    It is an Industry-led organisation that represents and supports all business and community tourism interests in the region, while also helping to implement provincial tourism policies.
    TOTA was recently recognised with North America’s Responsible Tourism Award at the World Travel Awards.
    Breaking Travel News spoke to Glenn Mandziuk to find out how it felt to have won.
    Take a look at his thoughts or find out more about the organisation, head over to the official website.
    Image: Tom Ryan
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    ABTA offers Brexit guidance on Tour Operator Margin Scheme

    Following discussions with ABTA, HMRC has confirmed that once the transition period ceases on January 1st, the VAT charged on holidays through the Tour Operator Margin Scheme (TOMS) on travel outside of the UK will be zero rated.
    This will remove an area of uncertainty on a crucial issue for many ABTA members and has been agreed by HMRC on the assumption of a possible no deal with the EU on TOMS.
    In the event of a no deal being reached with the EU on TOMS, a new UK version will be introduced which will require payment of TOMS VAT only on UK holidays but not on package holidays within the EU.
    A guidance note for ABTA Members has been agreed with HMRC, which provides further information and details in respect of transitional issues.
    The information is available to ABTA members here.

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    One area of uncertainty remains, that in the longer term there might be a requirement to register for VAT with individual EU states.
    The note will be updated as and when there is more clarity in this area and members will be informed through ABTA Today and the trade press if there any other further developments.
    Carolyn Watson, ABTA director of finance and operations, said: “The confirmation by HMRC that post Brexit packages within the EU will be zero rated for TOMS is great news for many of our members.
    “We were pleased to be able to work closely with HMRC on this important matter and I thank HMRC for its understanding of how serious this issue is for many travel companies and its action to remove this area of uncertainty.
    “This will greatly assist Members as they look to rebuild travel with our most important holiday destinations, the majority of which are within the EU.”
    She added: “However, I would stress that one area of uncertainty still remains; in the longer term the possible need to register for VAT purposes within individual EU state.
    “We will let members know when the position on this becomes clearer.”
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