Bourne Leisure is to provide oral evidence today to an inquiry into tourism by the government’s culture, media and sport committee.
The inquiry, announced in July, is examining ways in which the tourism industry can be developed for the benefit of both local economies and the country as a whole.
Key players in the tourism and hospitality industry were invited to submit written evidence.
A total of 79 submissions were received by the committee, which then selected a number of industry experts to attend as witnesses for oral evidence session which starts today (Tuesday).
The committee will hear the opinions of tourism experts which will be used to compile the report, aimed at helping the sector achieve its full potential throughout the UK.
Bourne Leisure chief executive John Dunford, sales and marketing director Jackie Martin and Dermot King, managing director of Butlins are to appear before the committee.
The company is the largest independently owned holiday business in the UK and operates under the Butlins, Haven and Warner Leisure Hotels brands.
Bourne argues that the high rate of VAT hits the competitiveness of the UK tourism industry, together with Air Passenger Duty.
The company’s written evidence to the committee said: “Every European country with a significant tourist sector chooses to apply a lower rate of VAT to tourist services (as they are allowed to do under EU law) except the UK.
“So, whereas an hotelier in Spain, Italy, Greece, France or Germany can charge from 7% to 10% VAT, the UK hotelier must charge 20%.
“We simply can’t compete at that rate of differential, except perhaps in the London bubble, and that has led to the missed opportunity that exists today.
“With a competitive VAT rate, more of our seaside and other tourist destinations could be powerful drivers of job creation and economic growth.”
Among the issues identified by the committee is the need to:
- Encourage tourism to parts of the UK other than London and a few other heavily visited cities
- Reverse a long-term decline in seaside destinations
- Reduce regulatory burdens on business
- Revise the application of taxes and fees to visitors from overseas, for example in relation to VAT, Air Passenger Duty, visa and other costs
- Redress visa and border arrangements
- Improve the competitiveness of hotel accommodation in comparison to other countries
- Increase skills and training within the domestic tourism sector
- Put in place structural arrangements for tourism promotion, including public funding and the roles of local enterprise partnerships, VisitBritain, VisitEngland and similar organisations in the rest of the UK