Tourism strategy falls short, says industry

The Government has been accused of "tinkering around the edges" and being "long on vision, short on implementation" with its new tourism strategy.

Trade bodies have welcomed the fact that a plan has been formulated, but said it does not go far enough and expressed concern at some details.

The proposal, announced today, compels the Government to create an industry-led task force to cut red tape, consult on shifting the May bank holiday to later in the year and helping the hospitality sector improve the professionalism of staff.

However, the rumoured proposal to shift daylight hours is not included, and hopes of an imminent VAT cut for tourism businesses have been dashed.

Federation of Small Businesses (FSB)​

The FSB accused the Government of "tinkering with tourism's potential" by not offering proper funding.

As well as reducing VAT and regulation for the tourism sector, FSB wants more Government funding for Local Enterprise Partnerships, created following the demise of Regional Development Agencies.

The FSB also calling for a tourism Business Increase Bonus, where councils keep a percentage of the business rates to fund regeneration in tourism.

It wants responsibility for tourism to be transferred from the Department for Culture, Media and Sport to the Department for Business, Innovation and Skills, and more focus on in-bound tourism from growing economies such as China, Brazil and India.

FSB national chairman John Walker said: "The Government is merely tinkering with tourism and has yet to unlock its true potential.

"The tourism sector needs a real boost and we need to ensure funds remain where they are truly needed.

"Tourism really can be a passport to growth — creating jobs and growing our local areas. But we need the Government to put the right measures in place to unlock the true economic potential of the sector."

British Hospitality Association (BHA)​

The BHA has also called for the Government to put its money where its mouth with to help tourism businesses.

Chief executive Ufi Ibrahim said it's "frustrating and self-defeating to have a grand design if one Government policy pushes the industry forward and another policy drags it back".

She was referring to the lack of detail about LEPs - and lack of action on VAT.

"VAT has become one of the most pressing issues facing the industry. The present high rate is making UK tourism very uncompetitive.

"In the latest World Economic Forum Global Travel & Tourism Competitiveness Monitor, the UK ranks 133rd out of 133 countries in terms of Price Competitiveness. So we are spending £100m on seeking to attract 4m additional visitors to the UK just at a time when the UK is bottom of the international price competitiveness league.

"Our serious price disadvantage also encourages potential stay-cationers to vacation overseas. This is completely counterproductive to the prime minister's objective to grow domestic tourism from 36% to 50% of total tourism spend by UK residents.

"We need far more action on this issue than the strategy seems willing to deliver."

Ibrahim welcomed the redtape task force, but called for a "top level" task force led by David Cameron.

Association of Licensed Multiple Retailers (ALMR)​

The ALMR welcomed the tourism strategy, but warned that ministers must do more to support small businesses.

"Pubs are undoubtedly the Cinderella of the hospitality and tourism sector," said Kate Nicholls, strategic affairs director. "The Tourism Policy ignores them at its peril, because if given the right support, this research shows they could be the jewel in our crown. The Government invests in jobs in hi-tech and manufacturing industries, but our research reveals that the hospitality sector has the potential to outstrip these in terms of growth and job creation.

"The Chancellor needs to be as bold on growth as it was on cutting the deficit — and a cut in VAT for our sector could pay handsome dividends in the long term.

"In the meantime, if the Government is serious about supporting the tourism industry then it needs to do three very simple things — it needs to recognise and applaud the role pubs and bars play in that, it needs to stop penalising responsible operators and it needs to support Britain's pubs in doing what they do best - provide a great service and fantastic product to customers and a dynamic and fun working environment for their staff."

Steve Haslam, TLC Inns​

"If they truly are going to cut red tape that can only be a good thing," said Steve Haslam, who operates four sites with a fifth on the way. "This industry is dogged by red tape.

"Bank holidays are dependent on weather so it could work in autumn. If the weather is good you take the money. I think extending summertime would be the best way — a very positive move for the industry to have lighter evenings."

Haslam was not surprised by Penrose's stance on a VAT cut, but said if it was ever reduced, it would be "monumental" for the trade.

"The Government will never drop taxes," he added. "I expect more from the beer escalator and cutting red tape will seem quite small compared to the Budget."