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Industry welcomes PM's support for tourism
The leisure industry has embraced Prime Minister David Cameron's pledge to place tourism "at the heart of plans to ensure the UK's economic recovery".
In a key speech on tourism, given by the PM at the Serpentine Gallery yesterday, Cameron called for tourism to be recognised as one of the cornerstones of the UK economy.
He said: "Quite frankly, right now, we're just not doing enough to make the most of our tourism.
"The last government underplayed our tourist industry. Tourism is a fiercely competitive market, requiring skills, talent, enterprise and a government that backs Britain.
"It's fundamental to the rebuilding and rebalancing of our economy. It's one of the best and fastest ways of generating the jobs we need. Tourism presents a huge economic opportunity. Not just bringing business to Britain but right across Britain driving new growth in the regions and helping to deliver the rebalancing of our national economy that is so desperately needed."
The response to the PM's speech was universally positive, with British Hospitality Association (BHA) and the Tourism Alliance among the associations to respond to Cameron's call.
"We are eager to take up David Cameron's challenge for the tourism industry," said Ufi Ibrahim, the chief executive of BHA.
"It's completely refreshing to see the prime minister speak so enthusiastically of the value of the industry to the UK economy, and its potential future contribution. This is what the industry has been wanting to hear for many years."
She added that BHA had long been concerned about the lack of joined-up government in which decisions taken by government departments negatively affected tourism without ministers and officials realizing the scale of the impact on the industry.
"We also welcome the focus on encouraging local tourism as a local industry and the ability of local authorities to invest more in tourism locally, though the details of this need to be carefully examined," she said.
Ken Robinson, chair of Tourism Alliance, also welcomed the PM's pledge and called for him to revisit the cuts made to VisitBritain's annual budget.
"Tourism offers significant potential to deliver growth and benefits at both the national and regional level," Robinson said.
"Just £15 of marketing activity is enough to generate £500 of additional expenditure in the UK economy from overseas visitors. At least £100 of that goes directly to the Exchequer through VAT and Air Passenger Duty. Funding for tourism is an investment, not an expense."
Meanwhile, Jean-Claude Baumgarten, president of the World Travel and Tourism Council (WTTC), used the opportunity to comment on Cameron's speech by highlighting the need to ensure that the capacity to receive inbound visits is not limited.
He said: "The private sector believes a number of challenges and barriers to growth need to be addressed in the government's new strategy.
"They include expansion at London's biggest aviation hub - despite the threat of increasing competition to the title from other European airports - the need for a single European sky, visa processes and procedures, and unfair taxation."
There was one dissenting voice, however, within the industry's response - in the form of Nick Varney, chief executive of Merlin Entertainments.
While "broadly welcoming" the PM's speech, Varney pointed out that Cameron had offered little substance.
"While I welcome the government's recognition of the importance of the tourist industry to both the economy and as an employer in the UK, Mr Cameron actually offered little practical help to businesses such as ours in this speech.
"The fact is that the UK and London are no longer the automatic choice of travellers. This country has a great deal of competition from other markets which are receiving real, practical support from their politicians.
"Leisure operations in other European countries for example enjoy special VAT rates as low as 5 or 6 per cent on attractions and hotel accommodation, compared to our 17.5 per cent and soon to be 20 per cent rate.
"More than that, cutting national tourism marketing budgets now, in the run up to the Olympics, is hardly conducive to increasing visits or spend here.
Nor does it give any confidence to the industry that this is any more than rhetoric, or that this Government really understands or cares about our issues."
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