Research released by
VisitBritain’s online resource for tourism accommodation businesses,
Accommodation Know How, shows the end of the temporary VAT reduction will have
an adverse affect on UK tourism.
The results shows
that, when compared to other top tourist destinations like the US, Spain, Italy
and Australia, visitors to the UK are paying about 10 per cent more for
accommodation and restaurants and 3.5 per cent more on attractions and other
It also claims that it
will reduce the UK’s
attractiveness to tourists compared directly to mainland Europe. France recently lowered the VAT rate for its
restaurants from 19.6 per cent to 5.5 per cent, and Germany
will be lowering its VAT rate on accommodation from 19 per cent to 7 per
And another report
from the British Association of Leisure Parks, Piers and Attractions says that
the loss to the Exchequer due to the lower VAT rate could easily be made up by
the increased income that tourism could potentially bring, as well as savings in
social security payments.
“A reduction in the
level of VAT for visitor attractions and accommodation could provide a tax
positive boost to the Treasury of around £600m and provide circa 23,000 jobs,”
says CEO of the BALPPA, Colin Dawson.