Pubs will benefit from £7m initiative to boost London's tourism economy

A multi-million pound initiative to promote London's tourism industry should give a welcome boost to pubs.

The three-year plan 'Visit London' aims to bring "new leadership, more investment and a new structure" to London's tourism industry after 2001 saw a huge fall in visitor numbers because of foot-and-mouth and September 11.

And it is hoped that if tourism is boosted in the capital, it will have a domino effect throughout the rest of the country, with pubs being among the businesses that reap the benefits.

A total of £7m extra public funding will be spent on promoting the industry until 2004 through the London Development Agency. But industry is being called upon to inject extra cash to ensure that the scheme is successful.

As part of the initiative, more affordable hotel accommodation will be available in outer London and the development of training and skills for staff in the hospitality and leisure sector were also been earmarked for action.

At the launch last week, London mayor Ken Livingstone said: "For too long the industry has suffered from a lack of strategic direction. This is my way of saying tourism is important to London and that I am making every effort to lead and support this crucial industry."

Bob Cotton, chief executive of the British Hospitality Association (BHA), said: "The additional funding and move towards a more focused marketing agency is particularly welcome and very good news for the promotion of tourism in London and the UK."

Meanwhile, the association has called for less red tape and more government support for the sector through the new licensing bill.

Bob Cotton said the government had a key role in actively sponsoring the industry and in creating favourable trading conditions, but private companies should then be left to run their businesses with minimal interference.

Mr Cotton said: "The tax and duty revenues gained from rising numbers of overseas and domestic visitors far exceeds government investment. None of this funding is a net cost to the taxpayer.

"Fewer regulations which take up so much time, particularly among owner operators of small businesses, and a licensing law that is in line with 21st century needs are essential," he said.