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The Big Issues ATHE Annual Conference 2011

The Big Issues ATHE Annual Conference 2011. Kurt Janson Policy Director. The Tourism Alliance. Umbrella Trade Association formed in 2001 to “speak with one voice” to Government on tourism issues. Comprises 50 member organisations that represent some 200,000 businesses.

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The Big Issues ATHE Annual Conference 2011

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  1. The Big IssuesATHE Annual Conference 2011 Kurt Janson Policy Director

  2. The Tourism Alliance • Umbrella Trade Association formed in 2001 to “speak with one voice” to Government on tourism issues. • Comprises 50 member organisations that represent some 200,000 businesses. • Purpose is to lobby and work with Government on policies that support the tourism industry and its contribution to the economy.

  3. In the Beginning …

  4. Going for Growth • To create the most competitive tax system in the G20 • To make the UK the best place in Europe to start, finance and grow a business • To encourage investment and exports as a route to a more balanced economy • To create a more educated workforce that is the most flexible in Europe • Tourism identified as one of eight industries targeted to rebuild and rebalance the UK economy

  5. The Policy TARGETS 1. Increase inbound tourism by 4.0m visitors per annum over the next 4 years. 2.Increase domestic tourism by 4.5m trips per annum. • If these targets can be achieved, the tourism sector will provide the UK economy with around 35,000 additional FTE jobs. Sets out 31 initiatives to achieve these targets.

  6. Tourism Alliance Response • Welcome the Strategy as a Significant Step Forward • Strongly support a number of initiatives • Taking Account of Tourism Across Whitehall • Regulatory Burden Task Force • Simplify the Visa Process • Improving the Planning Process • Concerns about others • The ability of DMOs to deliver • Reliance on LEPS

  7. It’s not “Job Done” More Needs to be Done to Provide Growth and Jobs • Ireland is spending more on marketing in the UK that VisitBritain is spending in all overseas markets. • The World Economic Forum ranks the UK as 134th of 139 countries for visitor taxes. • US visitor numbers have decreased by 34% over the last 10 years ... ... but rose by 10% to the rest of Europe. • Despite the invention of the “staycation”, domestic tourism fell 5% last year and 14% over the last 5 years.

  8. VAT • Of the 27 EU countries, the UK is one of only three that charges the full rate of VAT on tourism accommodation • A Deloitte/Tourism Respect study has estimated that reducing VAT on accommodation and attractions could result in a gain for the Treasury of £2.6bn over 10 years. • In the two years since France reduced VAT on restaurant meals from 19.6% to 5.5%, 62,700 new jobs have been created in the sector, while employment in the rest of the economy has declined.

  9. Air Passenger Duty • In the past five years, APD has increased by up to 650% for economy passengers and up to 750% for business passengers. • Government figures show that current APD charges exceed the cost of aviation carbon emissions by approx £200m per annum • Government proposes to increase APD by around 10% next year ... ... as well as including aviation in the European Emissions Trading Scheme

  10. Visas • The UK gets 109,000 visitors from China each year – they spend £1688 each (£184m pa) • Germany gets 500% more visitors from China (£1.1bn) • The UK gets 371,000 visitors from India each year – they spend £978 each (£363m pa) • France gets 50% more visitors from India (£544m) We could earn an extra... • £3.2bn per annum by 2020 if the UK retains its current share of outbound travel from these countries. This would equate to the creation of 64,000 new jobs in the UK economy • £5.2bn per annum by 2020 if the UK regains the market share that it had in 2000. This would equate to the creation of 104,000 new jobs in the UK economy

  11. The Noonan Speech “As part of the measures to support the tourism industry, a new temporary second reduced rate of VAT at 9% will be introduced with effect from 1 July 2011 until end-December 2013.” “To encourage overseas visitor numbers, I will be providing for the air travel tax rate to be reduced to zero” “To make it much easier for overseas visitors – including visitors from crucial emerging markets – to come to Ireland without having to incur the trouble and expense of applying for separate visas, the holders of UK visas will not require a separate visa to come to Ireland.” Michael Noonan – Minister for Finance, May 2011

  12. NPPF The perfect example of a double-edged sword • We want a PPF that allows tourism businesses to develop and grow, but ... • ... We also want a PPF that protects the natural and historic resources on which we depend. • The Good Practice Guide on Planning for Tourism is to be retained and will be revised

  13. Aviation Scoping Paper • The Climate Change Act commits the UK to reducing its net GHG emissions by at least 80% by 2050 “aviation should be able to grow, but to do so, it must be able to play its part in delivering our environmental goals” • It recognises that the Government has a target for inbound tourism growth but ... ... rules out runways at Heathrow, Gatwick and Stansted. • If taxes go up or capacity is restricted, domestic outbound travellers will out-compete inbound visitors for seats.

  14. Regulation Taskforce The Government has started with some “quick wins” • Removing EPCs for self-catering properties • Consultating on removing the need for entertainment licenses for live music • Removing the need for “no smoking” signs • Introducing a de minimus approach to alcohol licensing • Simplifying the water supply regulations Minister’s Regulation Taskforce Will Report at the End of the Year • Equality Act (Age Discrimination) • Package Travel Regulations • Money Laundering Regulations • TOMS

  15. Daylight Saving Rebecca Harris’ Private Members Bill passed through its second reading • Awaiting Committee Time to Examine the Bill • Indications that the Government may support the Bill for its third reading However • Review must find benefit for all nations • Difficult to see that Scotland or Northern Ireland will support a trial.

  16. London 2012

  17. The Value of the Olympics • At best, the Olympics will bring 400,000 overseas visitors to the UK who will spend about £200m. • However, if 10% of normal overseas visitors are deterred the loss will be £1.7bn • The value of the Olympics is the media attention – estimated at 20,000 journalists

  18. The Main Determinant of Success

  19. Homework 1. What is the Correlation between Investment and Employment Growth in Tourism? How closely is investment in the sector correlated with tourism revenue and employment growth? What is the lag time? 2. How Good is Tourism at Creating Jobs Compared to Other Sectors? This would help make the case that the Government would create more employment for a set level of investment if the investment was in the tourism sector. 3. How does Tourism Revenue Leakage from the Economy Compare to Other Sectors? How well is revenue generated by tourism is recycled through the economy rather than leaking away overseas.

  20. The Big IssuesATHE Annual Conference 2011 Kurt Janson Policy Director

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