State aid complaint updated against EnglandNet

Almost 50 UK domestic organisations have made an updated complaint to the European Commission over VisitBritain’s EnglandNet online project.

It follows a state aid compliant by a group of 37 independent holiday cottage booking agencies including Hoseasons submitted to Brussels in 2004 relating to EnglandNet.

Devon-based independent holiday home company Helpful Holidays has submitted the updated complaint.

The firm says it objects to the use of public money to create websites which provide booking services that it claims compete directly with private sector firms already operating in the market.

The new complaint is supported by 49 agencies, trade associations, online marketing companies and the Forum of Private Business.

Helpful Holidays general manager Moray Bowater said: “We find it bizarre that despite our efforts to reach agreement with VisitBritain in 2004 they have pursued their commercial ambitions in respect of this project.

“The domestic holiday market is enormously competitive. Consumers have a wide choice of commercial organisations which will help them with their holiday choices and make bookings.

“The interference of the public sector into this already crowded market is unwelcome, unnecessary and will compete directly with private firms which already successfully offer consumers this service.”

VisitBritain said that should the Commission pursue the original complaint it will be for the UK government to respond.

“As such it would not be appropriate for VisitBritain to comment on the substance of the complaint at this stage.”

The spokesman added: “EnglandNet is a national online distribution system for marketing England’s tourism products that works behind our existing websites enjoyengland.com and visitbritain.com. It makes it far easier for consumers to find and book Britain’s rich variety of tourism products.

“The VisitBritain and EnjoyEngland websites will give national and international access to a potential 17 million website visits in the UK and worldwide, set to rise to over 25 million in the next three years.”

As part of the VisitBritain response, Hoseasons chief executive Richard Carrick was quoted as saying: “Hoseasons Holidays are keen to find a way of working with VisitBritain and EnglandNet and after recent discussions are close to this.

“Whilst we are confident that VisitBritain will not go down the road of establishing a commission earning agency which would effectively act in competition to existing booking agencies, there are already other precedents within the UK that give us cause for concern.”

VisitBritain chief executive Tom Wright said: “The opportunities provided by EnglandNet will be of tremendous importance to this country’s tourism industry and VisitBritain wants englandNet to be supported by all sectors. To that end VisitBritain will maintain a continuing dialogue with all interested parties.”

Report by Phil Davies