Travel lobby slams ‘shortsighted’ cuts to DCMS
| Share article: |
Tweet | ||
 |
The World Travel and Tourism Council (WTTC), which represents major private-sector travel and tourism businesses around the world, has reacted with dismay to reports that up to half the staff at the UK Department for Culture, Media and Sport could face redundancy under government austerity cuts this year.
Such cuts that could “stagnate” growth in the sector, the WTTC believes.
“Yet again this coalition government has shown incredible short-sightedness and bad judgement,” says WTTC president and CEO, Jean-Claude Baumgarten. “The travel and tourism economy is worth £140 billion to the UK, a similar share of GDP to the financial and business services sector (10.1 per cent compared to 9.2 per cent respectively in 2009), but while the latter received a bailout to the tune of £850 billion, the government appears to be actively working to stagnate growth in travel and tourism.”
WTTC points to the UK government’s pledge to prevent expansion at London’s biggest aviation hub - despite the threat of increasing competition from other European airports - overreaction to the volcanic eruption, continuing challenges of visa procedures, and unfair taxation from Air Passenger Duty, as well as a VAT increase.
These, coupled with potential cuts to the department responsible for supporting Britain’s leading tourist institutions could harm an industry which supports 3.1 million jobs and attracts £24.3bn in visitor exports in the UK.
“If it continues down this path, the UK will quickly lose its competitive advantage and find itself falling from the top 10 league of international destinations,” says Baumgarten. “We are not asking for a handout, but the private sector needs this government to implement policies that will help it thrive and quickly create new employment opportunities to help bring the UK further out of recession.”
Baumgarten said the WTTC planned to meet with the Prime Minister to raise these issues.
Meanwhile, a new report by Deloitte and Oxford Economics, says England now contributes 84 per cent to the total UK visitor economy.
The report, ‘The Economic Contribution of the Visitor Economy: UK and the Nations’, says, in 2009, England’s visitor economy generated £97bn of GDP (8.6 per cent of the national total), supporting over two million jobs. The report predicts a growth of £50bn in visitor spend over the next 10 years, a faster rate of growth than the other three home nations.
By 2020, the report forecasts English tourism will support an additional 225,000 jobs accounting for 8.7 per cent of total employment.
Chief executive VisitEngland, James Berresford, clearly has more faith in the politicians than the WTTC: “These are interesting times for the industry, the tourism landscape is changing,” Berresford says. “The Secretary of State has already highlighted the need to focus on domestic tourism and we at VisitEngland are committed to growing this important sector.”
23 July 10
|
Kenes Group appoints new COO International event organiser and management company Kenes Group has appointed Luc Hendrickx as its new Chief Operating Operator (COO). |
 |
|
Merlin Events’ It’s Your Party attracts Via Europe and Omincon Europe More than 200 event industry professionals, including representatives from Visa Europe, Conran, Omincon Europe, Melon and Chillisauce attended Merlin Event’s new... ...read more |
 |
|
Event Production Awards recognise Etherlive and Arena Group The Event Production Awards claimed over 500 guests at Hilton Park Lane, 1... ...read more |
 |
|
Welsh Tories’ conference cancellation costs Llandudno dear The Welsh Conservative leader was one of many who lost their hotel deposit in Llandudno as the party cancelled its conference, which had been due to kick off in the... ...read more |
 |
|
International Confex announces Association Day UBM Live, organiser of International Confex, has unveiled an ‘Association Day’ educational conference aimed specifically at buyers and planners of association... ...read more |
 |
