In his Commons speech, the Chancellor of the Exchequer said that his Budget would "build on the strengths of the British economy and its people, speed the recovery, providing jobs and spreading prosperity."

One of the strengths of the British economy is the tourism, hospitality and leisure industry. It attracts over £16bn annually in overseas earnings. It is the key economic driver of many regions of the UK and is one of the country's largest industries, employing over 2m people and valued at more than £110bn. It is currently investing well over £5bn a year in new facilities, providing new jobs throughout the country.

Furthermore, its job-creating potential - at all levels - is significant. They are jobs, both full time and part time, that people want; they are also jobs that can fit into any work/life balance pattern.

It is curious, therefore, that despite its size and importance, tourism didn't get a mention in the Chancellor's speech, while other industries - creative, oil, IT, energy - did, most of them receiving some form of fiscal encouragement from the Chancellor. Tourism was ignored. It was an opportunity missed.

Gordon Brown frequently insists that Britain must invest its way out of the economy - yet the Budget has done little to encourage this in tourism. Although the hotel industry alone has invested over £25bn in the last five years, and opened over 1,000 new hotels, that investment has been encouraged by the existence of the Hotel Buildings Allowance (HBA) and other capital allowances.

In 2007, the government abolished the HBA and reduced other capital allowances although it offered a concession in the temporary first-year capital allowance. This is a blow to operators because investment in hotels, restaurants and attractions is essentially long-term. Independent owner-operators must invest for the long-term and arrange appropriate long-term finance. The latest Budget has given them little incentive.

At the same time, the industry's short-term needs have also been ignored. The Budget's main focus was to look two, three or more years ahead, but there are more urgent problems. For tourism, the immediate need is to encourage more domestic holidays this year. Frustratingly, the Government is investing heavily in green and hi-tech industries to pull the economy out of the recession (investments that take many years to produce a return) rather than investing in tourism which can produce a near instant return on the government's investment.

If government really wants to encourage more new investment, it needs to restore the Hotel Buildings Allowance and the long-term cuts in capital allowances, stop the imposition of additional employment costs on businesses (particularly in business rates, employment and NI) and stanch the endless stream of new regulations.