Inbound
tour operators have reacted with dismay at rumours that VisitBritain,
the government agency responsible for promoting the UK as a tourist
destination is to suffer further cuts to its funding.
ETOA
understands that the Department for Culture Media and Sport (DCMS)
has agreed to an 8% cut to its budget but tourism promotion, in the
form of VisitBritain and VisitEngland, will suffer a 12% cut.
According
to a study by Deloitte in 2010, Travel & Tourism represents 9% of
UK GDP - £115 billion in value and 2.6 million jobs distributed over
200,000 companies. It is thus a very significant part of the
economy. However, when it comes to government support, tourism
receives just 3% of the DCMS budget. (Please see chart
below.)
The
coalition government has previously recognised the economic potential
of tourism. In August 2010, at a speech at the Serpentine Gallery,
the Prime Minister pledged to lift the UK higher up the UNWTO
rankings of tourism destinations (by number of arrivals) from 6th to
5th. But since that declaration of intention by David Cameron, the UK
has fallen to 7th behind Turkey.
“The
UK’s position as a tourism exporter is in a critical state,” said
ETOA Chief Executive Tom Jenkins. “In our main markets, the UK has
been losing share against other destinations in Europe. In the USA,
according to the Department of Commerce, the UK attracted over 4
million Americans in 2000; by 2011, these had fallen to 2.4 million.
Our market share has dropped from one in four US travellers coming
here to less than one in five. The cost of this failure can be
measured in billions of pounds and tens of thousands of lost jobs.
The USA is just one market; there are similar falls in other origin
countries“
“We
recognise that savings have to be made, and that expenditure has to
be paid for. But tourism is a cash-generating, export industry. As an
industry, we are handicapped by Air Passenger Duty, a border that is
perceived as hostile, the UK’s own visa process and a flawed VAT
regime that punishes operators for selling Britain abroad. In this
context, it seems desperate to cut funding to the one agency charged
with helping British exports in this area.
Source:
U.S. Department of Commerce, International Trade Administration,
Office of Travel and Tourism Industries (2012)
Mario
Bodini, President, JacTravel said: “Actions speak louder than words
and when it comes to this government’s actions, I’d sum them up
as “legacy schmegacy”. Money that should have been spent on
sensible tourism promotion was diverted to funding the Olympic
Games, which we all know now, was not good for tourism.
Promises were made about investing in promoting the UK after the
Games but abracadabra the tourism promotion budget has evaporated!”