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Inbound tourism faces ‘catastrophic shortfall’ in funding

The UK inbound tourism recovery is threatened by a “catastrophic shortfall” in funding despite an upturn in bookings, with demand for the UK falling behind the rest of Europe, according to industry leaders.

Tom Jenkins, chief executive of European tourism association Etoa, told Travel Weekly: “There is every reason to expect a significant improvement this year, notwithstanding the lingering pandemic and a potential war in Europe.

“But intermediaries face a lack of staff and of liquidity. We don’t have any money.

“Inbound operators in Germany have been given generous funds. Operators in England have had virtually nothing.”

Jenkins argued: “The scale of the problem is under recognised. The UK was due to receive £30 billion in export earnings from inbound tourism in 2020. The companies I represent would have expected £8 billion to £9 billion in turnover. That dropped by 95%.

“This catastrophic shortfall is going to take time to recover from.”

UKinbound chief executive Joss Croft agreed, saying: “We need to win back international visitors. Prior to the pandemic the private sector invested millions annually promoting Britain abroad.

“These businesses now have hugely depleted reserves. Business confidence has returned to pre-pandemic levels, but revenue and promotional investment hasn’t.”

A UKinbound spokesperson added: “Tour operators would normally be putting millions into marketing internationally. They just don’t have the funds.”

Jenkins warned: “The UK is falling behind the rest of Europe in terms of demand.

“We’re seeing strong bookings coming in all the main destinations in Europe that appeal to Americans. But London and the rest of the UK is lagging.

“Some of this is due to the volatile nature of the restrictions on visitors in 2021. Europe eased its restrictions earlier, but it seems to be more than that.

“There was almost no business to the UK last year and you want people going back saying ‘We had a great time’. We’re trying to build back from a very low base.”

VisitBritain unveiled a £10 million international marketing campaign earlier this month. By contrast, Tourism Ireland has an €80 million fund for international promotion and Spain €90 million.

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