The Future Travel Coalition (FTC) has formally reached out to newly appointed UK Prime Minister Andy Burnham, urging his government to adopt policies that unlock the full economic potential of the travel and tourism sector. In a letter addressed to Burnham and his Cabinet, the coalition — which represents a broad cross-section of the UK travel industry including leisure and business travel associations — underscored the sector's annual contribution of over £165 billion in gross value added (GVA), equivalent to 6.7% of the UK economy, and its support for more than 3 million jobs.
The FTC, a collective of trade bodies spanning airlines, hotel groups, tour operators, and travel agents, stressed that the industry faces mounting headwinds. Rising taxes, elevated employment costs, and an expanding regulatory framework are squeezing margins across the value chain. The coalition warned that businesses cannot absorb these pressures indefinitely without curbing investment, reducing headcount, or passing costs to consumers — moves that would ultimately dampen demand and slow the recovery.
Specifically, the letter pointed to Air Passenger Duty (APD) and local tourism levies as factors that erode the UK's competitiveness against other European destinations. With consumers already grappling with a higher cost of living, additional fiscal burdens on travel risk diverting outbound and inbound traffic to lower-tax jurisdictions. The FTC called for a review of these charges to ensure the UK remains an attractive hub for both leisure and business travel.
The coalition welcomed recent government efforts to strengthen UK-EU relations but emphasised that more progress is needed, particularly on youth mobility schemes and the removal of operational barriers that hinder seamless cross-border travel. These issues are critical for airlines operating routes such as London Heathrow to Paris Charles de Gaulle, and for hoteliers in gateway cities like Manchester and Edinburgh who rely on a steady flow of European visitors.
Looking ahead, the FTC expressed readiness to collaborate with ministers on the forthcoming Tourism Growth Plan, which aims to attract over 50 million annual visitors to the UK by 2030. The coalition highlighted that travel and tourism businesses — from British Airways and easyJet to InterContinental Hotels Group and TUI — are essential partners in implementing policy proposals, especially in addressing persistent skills shortages and workforce challenges. The sector's ability to recruit and retain talent remains a top concern, with many operators struggling to fill roles in hospitality, ground handling, and customer service.
Industry-wide implications for travel professionals
For airline executives, the FTC's call for lower APD and streamlined EU relations signals potential relief on cost structures that directly affect route profitability. Hoteliers and cruise lines, including those operating out of Southampton, stand to benefit from a more competitive tax environment and increased visitor numbers. Tour operators and travel agents, particularly those serving the UK outbound market, would see improved margins if employment costs and regulatory red tape are reduced.
The coalition's emphasis on the Tourism Growth Plan also aligns with broader industry trends. As noted in recent coverage of IATA 2025 data showing premium travel surging, the UK must position itself to capture high-spending travellers from Asia-Pacific and other growth markets. Similarly, the push for youth mobility echoes findings from the RateHawk Futurecast on Gen Z reshaping travel distribution, where younger demographics demand frictionless cross-border experiences.
For MICE professionals, the FTC's focus on reducing operational barriers is particularly relevant. The UK's conference and events sector, which relies on easy access for international delegates, has been hampered by visa delays and customs bottlenecks. A more supportive policy environment could boost business events at venues like ExCeL London and the Scottish Event Campus, driving demand for corporate travel services.
The FTC's outreach comes at a pivotal moment. With the new administration still shaping its economic agenda, the coalition is positioning travel as a cornerstone of national growth. The sector's ability to generate employment, attract investment, and enhance the UK's global standing hinges on the government's willingness to act. As the Tourism Growth Plan takes shape, industry stakeholders will be watching closely for tangible commitments on tax reform, workforce development, and EU relations.
