Reprinted from Travel Trade Gazette UK & Ireland
Hilton calls for tourism tax cut
By Linda Fox Hilton UK and Ireland has called on the government to reduce tourism's VAT burden and provide cabinet representation for the sector. The proposals were part of the group's submission to the government's select committee on tourism. Managing director Grant Hearn said: "Research shows that the UK's share of tourism is diminishing. Countries that have taken a stance on reducing indirect taxation have seen their share grow." Mr Hearn claimed research also showed that if hotels reduced prices by 10 per cent, volumes would increase. "We would give more money to the exchequer than if we carry on the way we are," he added. "This industry is probably the biggest collector of taxes for the government. There is an enormous opportunity to grow inbound tourism because there are so many people going abroad and spending money." Mr Hearn also said the government and industry-funded Million Visitor Campaign should be repeated next year to keep the UK in the forefront of people's minds. "It has put the UK back on the map, but you cannot do that on a one-off basis," he said. Mr Hearn praised the campaign for bringing the tourist organisations together, but said an even more co-ordinated approach was needed. "We would not send out a different sales
person for each hotel to agents because you end up competing with each
other, and it is the same with the tourist boards." |