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Take Tourism Seriously!
Throughout the year I have been writing monthly letters to all MP's with a strong tourism led constituency, urging them to take tourism seriously.
Government must recognise the importance of tourism to the UK economy; but does it? At the time of writing, British tourism is more or less leaderless. The chief executive of VisitBritain leaves shortly; VisitEngland is still seeking a chairman and chief executive; the chairman and chief executive of VisitLondon are both leaving shortly and appointments have yet to be made.
At one of the industry's most difficult periods, people are leaving key tourism posts. At the same time, VisitBritain has published a review, the British Tourism Framework Review, which attempts to chart the future course of an industry that, in all its facets, is now worth some £110bn to the UK economy. The review highlights some of the dangers facing British tourism, including the problem of too little public funding, too little co-ordination of tourism interests and too little interest in the industry by government.
For example, VisitBritain's funding has been cut by 18 per cent just at a time when overseas promotion is most badly needed. Nor is there any overall direction of the tourism industry, with confused lines of communication between VisitBritain, VisitEngland, VisitLondon and the Regional Development Agencies - all quite separate organisations, with their own vested interests. At the same time, the DCMS, which has nominal responsibility for tourism, might have a tourism minister but it doesn't have a separate section to oversee the industry and, worse, appears totally indifferent to tourism affairs.
In this unsatisfactory scenario, businesses have to continue to operate - and survive. In order to help them, the government can introduce three measures that would immediately ease the financial pressure that the industry faces. The first is to introduce legislation that allows NI and VAT payments to be deferred. This was granted at the time of the foot-and-mouth outbreak in 2001 and it saved hundreds of businesses and thousands of jobs then. It would have a similar beneficial impact now.
Secondly, in order to keep investment flowing, capital allowances on new buildings and facilities, which were disallowed in the 2007 Budget, should be reinstated, together with the postponement of the abolition of the Hotel Buildings Allowance. This would encourage - not discourage - new investment. Thirdly, the government should stop introducing more regulations. These cost businesses billions of pounds and Ministers seem to have little concern (or knowledge) about the financial impact which new regulations in employment, health and safety, food safety and other areas are inflicting on the industry.
Now is not the time to inflict yet more regulation on businesses already fighting for survival. Now is the time to Take Tourism Seriously.
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