Tourism industry must show the government its full potential, says BHA

29th June 2010, 4:30pm

Tourism still has to convince government that everyone gains if the industry is able to fulfil its full potential, Sir David Michels, president of the British Hospitality Association, told the BHA's annual luncheon at Grosvenor House, London, today.

"And I mean everybody. Our own businesses. The folks with new jobs. The local businesses that gain from increased visitor numbers. Even the Chancellor, who gains through increased tax revenues."

Sir David said that the industry's Take Tourism Seriously campaign aimed to achieve four objectives: "First and foremost, for government to leave us alone; with fewer regulations. This will cost nothing, but it will relieve the hospitality industry of mostly meaningless cost. That will leave us all to deal with what matters most: our customers.

"Secondly, the industry needs to have the right tax incentives to encourage investment. The loss of the hotel building allowance damaged precisely the sector of the industry, the owner operator, that most depended on it. It was a classic case of government not taking tourism seriously."

He said that the annual £30 million grant to Visit Britain was "a fantastic investment".

"Overseas visitors bring in £17 billion a year of which £2 billion goes to the Exchequer. If only any of us had that return on our business investments!"

But he questioned whether, at a time when Visit England had no money to promote England in north America and near Europe, its funds would not be better spent generating domestic demand.

"And, similarly, would it not be more effective if VisitBritain promoted Britain in these established source countries, rather than, say, South Korea, where the return to us will inevitably be much less, in the short term at least.

"Perhaps in this time of austerity we should redefine our objectives and be clear what role is best for all our many tourist organisations.".

Finally, emphasising the size and job-creating potential of the industry, Sir David criticised the succession of tourism ministers who had made little impact on the industry and on government thinking.

"Yet so many government departments introduce policies that directly affect our industry: Treasury, Environment, Home Office, Department of Business, Revenue and Customs, Department of Health to name but six. Do they consult DCMS on their proposals? Sadly even such a major item as the hotel building allowance took DCMS by surprise."

He said that the industry wanted a government that encouraged tourism - "one that supports and nurtures us through all the well managed investments in profitable hospitality enterprises that we are able to create".

Related Articles:

• 01 Oct 2010 - BHA to launch economic plan for hospitality
• 12 Aug 2010 - David Cameron urges the tourism industry to work harder
• 22 Jul 2010 - New BHA chief says hospitality is key pillar of British economy
• 09 Jul 2010 - More holidays abroad have not destroyed the British tourist industry, claims new report

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