Tourism leaders must send ‘wake up call’ to politicians

The UK tourism industry urgently needs a more co-ordinated approach in order to pull its weight with government – or face disaster.

The message came from UKinbound while warning that 2007 will be a “challenging year” for the industry due to the combined effect of the weak US dollar exchange rate, high oil and energy prices and the doubling of Air Passenger Duty from February 1.

The organisation, which represents 250 companies involved in inbound tourism to the UK, found that an overwhelming 92% of members said increased aviation taxes would have a detrimental impact on their business; just over a quarter thought it would have a severe or significant impact, while 67% expecting a slight decline.

It warned that is the dollar drops below the psychologically important $2 barrier analysts predict it will soon slump to $2.20 before stabilising.

“This is a dreadful prospect for inbound tourism,” chief executive Stephen Dowd said.

He added: “Despite being the sixth largest industry and second largest export earner, tourism is still failing to get its message across to government.

“It is time we started working more closely together and became more united in our advocacy objectives or we face the deterioration of our industry as tourists, both UK citizens and potential overseas visitors vote with their wallets and choose to spend their hared earned holiday budgets in destinations that have a less oppressive tax regime and governments who understand and appreciate the value of our industry to their economy.”

He said one of the aims of the first British Tourism Week in March is to give a “wake-up call” to politicians who wield so much power over the success or failure of the industry.

The comments came as UKinbound revealed its Business Barometer for October, showing a 4.4% year on year rise in visitor numbers and a 3.7% increase in forward bookings.

“But, as in the previous two months, this reflects the sharp drop experienced in the same period last year,” the association said. “Indeed, the increases for October are considerably less than the fall last October; a clear indication of difficult trading conditions.

“This is certainly in line with anecdotal information from members who report weak long haul demand especially in leisure business.”

However, UKinbound members reported that the corporate sector appeared to be holding up well, particularly in London. 

Report by Phil Davies