Travel sector hung out to dry

Travel bosses fear a hung parliament will stifle the short term future of the travel industry.

Norman Gage, director of business travel at Advantage, said the prospect of a coalition or minority government came at a time when important decisions about the travel sector needed to be made.

"I think that all the political parties have given scant attention to the travel industry and its needs for the last 12 years," he said.

"I think right now it's status quo as far as the travel industry is concerned."

Gage warned there would need to be decisive action on European aviation issues, such as a single European sky and an integrated air policy.

The ash crisis is "the elephant in the room", added Gage, "and it is rumbling on".

The Heathrow expansion issue was a hot topic in all three major parties manifestos, while struggling airlines battling with the rising costs of the ash crisis seek compensation and regulatory change to passenger compensation rules.

Mike Carrivick, chief executive of the Board of Airline Representatives in the UK (BAR UK) said a hung parliament will mean a "muddy" situation for the aviation industry in the short term.

Conservative and Lib Dem are anti-aviation, said Carrivick, while Labour is pro-expansion.

"It's going to be extremely confusing for the industry at large and there will be several things to work through once we know who's in the cabinet," he said.

"I think there will be a lot of indecision and a great lack of clarity, until the powers that be settle down."

The hospitality business is seeing green shoots, but hotel room rates remain low and growth is unpredictable, according to recent figures from hotel consultancy PKF.

A spokesman for the British Hospitality Association warned the worst thing for the industry would be indecision.

"What tourism and hospitality want is certainty and a decisive government that understands the needs of the industry, which are many and varied," he said.

"We would wish that tourism was high on the government's agenda and they understood its economic importance to the country, which doesn't seem to have been the case for the past 13 years."

However, it is still too early to tell what the final outcome will be for the travel sector, said Paul Tilstone, chief executive of the Institute of Travel and Meetings and NBTA Europe.

"Until we know what type of government is going to be formed, and what compromises people have had to make, nobody knows," said Tilstone.

"I don't think you can say transport won't be a priority. As part of the negotiation process, a clear policy on transport may emerge... There does need to be some clarity, some understanding of what the government wants the transport infrastructure in the UK to look like in the next 10, 20 and 30 years.

"There are differences behtween the parties' opinions. A hung parliament and a weak coalition could mean that decisions aren't made. On the other hand, perhaps it means there will be more sensible debate and the right decisions are made."

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