The head of the UK’s leading inbound operator has slammed the government and called for an unprecedented industry alliance to win more travel-friendly policies.
Mario Bodini, managing director of JacTravel, said a combination of the new year VAT rise, “punitive” rates of Air Passenger Duty (APD) and cuts in funding threaten travel in and out of the country to such an extent that it requires a cross-industry alliance to pressure ministers for change.
“The government needs to take tourism seriously and understand the effects it has,” said Bodini. “Tourism creates jobs – sustainable jobs. But it is just an easy target for tax. We face a battle to stop further rises in APD.”
Bodini pointed out that overseas visitors to the UK boost the economy by £19 billion a year. Earnings from outbound travel, and domestic tourism, swell
that considerably, making tourism a major contributor to the UK economy.
The World Travel and Tourism Council estimates the direct value to the UK economy at 3.7%, but puts travel’s full contribution – including all the associated jobs – at almost 10%.
However, the government does not see it like this. Instead ministers refer to Office for National Statistics figures that measure spending by overseas visitors to the UK each month against spending by UK visitors abroad.
This produces an annual “tourism deficit” – or loss to the UK – of about £16 billion. Yet these figures exclude revenue to outbound tour operators, retailers and UK airlines, and the figures might just as easily be added to show the full value of tourism.
This division between inbound and outbound tourism is mirrored in the industry, said Bodini. “There is no real collaboration between inbound and outbound industries.
“We are fragmented, but we have a lot of common issues. We have a very strong case. We should speak as one voice.”
With that in mind, Bodini has invited Abta chief executive Mark Tanzer to address the annual convention of inbound trade association UKinbound
in February, at which senior figures in British Airways and airport operator BAA will also speak.
Bodini echoed Abta’s demand for a senior and dedicated minister of tourism. He said: “The last government had a minister for the City of London. Tourism generates just as much revenue, but just has a junior minister at the Department for Culture, Media and Sport. It needs a much higher status.
“At the very least, tourism should be a key portfolio in the Department for Business,” Bodini added.
In fact, tourism is just one of seven areas covered by minister John Penrose and outbound travel is beyond his remit. Penrose is poised to unveil a tourism strategy after prime minister David Cameron pledged last year to make the UK the world’s fifth most-visited destination.
The country currently lies sixth with 28 million visitors in 2009, behind fifth-placed Italy on 43 million. Turkey, in seventh, had 25.5 million.
“The government message is not consistent,” added Bodini. “Tourism funding is being cut to the bone. It’s more likely Turkey will overtake the UK in the rankings.”