British cutbacks not expected to hit foreign holiday sales

PALMA
FEARS amidst the Balearic holiday industry over the negative affects the spending cut backs announced by the British government will have on holiday sales appear to be exaggerated after UK tourism chiefs, currently taking part in the ABTA convention in Malta, played down the damage the fear of job and benefits losses will have on demand for holiday.

Some sectors of the UK industry have admitted that it may lead to slow down in sales after a surge in bookings over the past few months - as we reported last week, Balearic holiday sales for summer 2011 are already up by 20 percent on last year - but a down turn in trade is not expected.

Luke Pollard, ABTA's Head of Public Affairs commented on George Osbourne's spending review said at the Association of British Travel Agents convention: “The cuts announced will undoubtedly land a blow to consumer confidence which will have a knock on effect on how consumers want to spend their money when it comes to holidays, but the message from the Travel Convention is that the travel industry needs not to be too pessimistic. “Yesterday we heard from Douglas McWilliams, Founder and Chief Executive of the Centre for Economic and Business Research at our Travel Convention in Malta. He predicted that while the economy in the UK means British disposable incomes will be suppressed in the immediate future, current austerity will force consumers to spend smart in order that they can continue to have money for ‘new' essential items such as travel.

TRAVEL IS ESSENTIAL “Clearly value for money will be key to holidays over the coming year, but our Members and partners are also telling us that holiday makers want to be able to trust the companies they book with, which is why holiday makers can be reassured when they book with ABTA Members that they will receive high professional standards, value and quality. “We also heard at the Convention that spending on travel will be one of the stronger sectors of the economy over the coming years as well as being a sector that will be key to job creation.” The UK holiday industry has seen a swing in market trends with Turkey, which has enjoyed two years of massive growth in the British market, beginning to lose its shine along with Greece with both countries having experienced a series of problems which have put holiday makers off returning and opting for the tried and tested Balearics instead. Further evidence of the Balearics' return to popularity with the British market came yesterday when lowcostholidays.com, which will be sending 25'000 people overseas next week, reported that the two most sought after destinations for the October half term are Majorca and Tenerife.

However, with Balearic holiday prices currently trading at around 10 percent lower than last year, the local tourism industry needs to heed the warning from ABTA that Britons are going to be wanting value for money - indicating that 2011 is going to be another price sensitive market.