UKinbound attack funding snub

UKinbound has accused the government of setting ambitious growth targets for UK tourism while doing nothing to help achieve those aims.

In its monthly business barometer, chief executive Stephen Dowd said targets to grow total industry revenues from £75 billion to £100 billion – a 5% annual rise – “already appear doomed” because of Labour’s refusal to provide funds.

Hopes that new tourism minister James Purnell may play a more supportive role for UK tourism also appear dashed, he added.

“We had hoped he might have taken a more enlightened view, especially after the July bombings, but the word is that he is not inclined to support such a move,” said Dowd. “The targets of 5% growth per annum already appear doomed as the department of culture, media and sport expect this to happen without making any additional investment in tourism.

“We are told there is no budget in the department which I find reprehensible. More funds are given to culture and media than tourism even though we bring in more money.

“VisitBritain has not had an increase in funds for eight years. How are we suppposed to grow when the government is not prepared to invest? We are falling behind our competitors.”

He added it was making life impossible for tourist bosses across the country.

“With government sitting on its hands, our regional tourism boards have to dream up ever more imaginative ways to raise funds for their marketing campaigns,” said Dowd.

One, unnamed, chief executive even proposed introducing a beach tax – a proposal roundly denounced by members of UKinbound.

Meanwhile, figures for September show inbound tourism is slowly beginning to recover although Dowd described the recovery as “fragile”.

Arrivals during the month fell almost 4% on the same month last year – an improvement on August’s year-on-year performance which fell 8.4%.

Forward booking also show a deficit, 7.4%, underlining the fragile nature of the recovery and the trend for later bookings.

Dowd said normal booking patterns should return by the end of the year.

But he warned a recent fall in fuel prices and improvement in exchange rates should not be taken as “indicative of improved market conditions.”

“Fundamental economic problems in both the UK and US remain,” he said.

Visitor numbers and revenue are expected to be in line with 2004 at 27.8 million and £13 billion respectively with forecast growth in 2006 of 4%-5% for visitor numbers and 2%-3% in revenue.

Report by Steve Jones