BRITAIN could soon drop out of the top 10 destinations
list unless there is a radical overhaul of the tax burden on tourism, the
British Incoming Tour Operators Association has warned.
Giving her welcoming address at the BITOA convention
in Cardiff, chairwoman Angela Shanley warned the price of doing business in the
UK was costing the travel industry customers.
She said the Government claimed the UK travel industry
would thrive by investing in training and raising quality standards – areas
Shanley claimed were already comparable with other destinations.
“In a highly competitive, price-driven world market,
even a small price differential can affect consumers’ destination choice,” she
said.
“Britain is losing market share, dropping from fourth
to seventh place in the world rankings. Unless we have a radical restructuring
of the tax affecting tourism, we may
have the nightmare scenario of Britain dropping out of the top 10
destinations within the next five years.”
In a World Travel and Tourism Council survey of 52
city destinations, London had the second highest taxes on a package of products
such as hotel nights and theatre tickets, said Shanley.
“We struggle to match competitors on price and the
repressive tax regime under which we operate is largely to blame.”
Shanley suggested tourism would be better served if it
was moved out of the Department for Culture, Media and Sport and put under the
Department of Trade and Industry.