Two-thirds of travel sector employers with staff still on the furlough scheme are planning redundancies once the wage support is removed at the end of the month, the travel association ABTA has warned.
The body said a survey of its membership showed that 69% of employers planned to let staff go after 30 September.
It blamed “overly-cautious” coronavirus restrictions on travel in the UK, saying they had hammered demand during the peak summer season and inflicted huge damage on the industry’s chances of recovery as a result.
The figure rose to 226,000 when the employment impact on the supply chain was factored in, its report said.
It warned that 43% of travel agent and tour operator workers, tens of thousands of people, were currently still on furlough though the report could not put a number on the roles set to be lost.
ABTA spoke out as ministers prepare to review the restrictions covering international travel by 1 October – with discussions set to intensify this week as the PM outlines later on Tuesday his plan to deal with coronavirus over the coming months.
ABTA is demanding the traffic light system for destinations is scrapped, along with the widespread use of PCR testing.
It accused the government of wasting the success of the vaccine rollout to date and said it should be up to individuals to determine their own risk status.
The body complained that shifting restrictions and confusion meant that 58% of bookings, with departure dates in July or August this year, had to be postponed or cancelled.
It concluded that too much damage had been done to demand for the government to end financial support now, with a letter to Boris Johnson and chancellor Rishi Sunak urging “a package of tailored financial support – extending the furlough scheme for travel businesses and a dedicated grant fund”.
ABTA chief executive, Mark Tanzer, said: “The government’s travel requirements have choked off this summer’s travel trade – putting jobs, businesses and the UK’s connectivity at risk.
“While our European neighbours have been travelling freely and safely, the British were subject to expensive measures which have stood in the way of people visiting family and friends, taking that much-needed foreign holiday and making important business connections.
“The government needs to wake up to the damage its policies are doing to the UK travel industry and the impact they will have on the wider economic recovery.
“It is the fares from leisure passengers that keep our planes flying and routes open – a diminished holiday industry is a diminished aviation industry with fewer routes and fewer flights. That’s not how you achieve a global Britain.”
Sky News has contacted the Department for Transport for a statement in response.