14 November 2008

Travel must not become 'cash cow' for governments

Governments have been warned off using the travel industry as a ââ¬Ëœcash cowââ¬â¢ during the current economic crisis.

The comments came from World Travel and Tourism Council chief Jean-Claude Baumgarten.

He called on governments worldwide to work in partnership with the private sector of travel and tourism businesses for the long-term sustainability of the industry.

Speaking at World Travel Marketââ¬â¢s Global Economic Forum, Baumgarten said: "This is no time for governments to see travel and tourism as a 'cash cow' - an easy source of much-needed revenues for the treasury's coffers."

Instead, governments should provide a supportive policy framework to help stimulate demand and ensure that the sector continues to generate employment and alleviate poverty in emerging markets.

"In this way, it will be beneficial for everyone - destinations, host communities, the industry and consumers," the WTTC chairman and CEO said.

He admitted: "The last few months have been increasingly challenging, not just for travel and tourism but for all sectors of the global economy.

"What started as a credit crunch in the USA has developed into a major financial and economic crisis that has spread rapidly to all four corners of the globe.

"And we clearly haven't seen the end of it yet."

He added: "Although severe, this crisis cannot be compared with past crises due to events such as 9/11, SARS, or even the Gulf war.

ââ¬ÅâœToday, people still want to travel and, once the recovery starts, there is likely to be huge pent-up demand."

In the meantime, the industry is by no means at a standstill as some would lead us to believe, Baumgarten claimed.

It will take some time to re-establish the balance between supply and demand, and it is going to be a very different world out there when we do see the end of the current crisis, he admitted.

by Phil Davies 

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• 'What started as a credit crunch in the US'
  
  

  the Globe has 'four corners'???

  By Theresa Streatfield, Friday, November 14, 2008
• Well Said Sir
  
  

  At last someone from the top layer of industry who can see the stupidity of the 'it moves tax it philosophy' that seems to have become the dominant theme of the invariably negative thinking of most European legislation. Some of our politicians need to take a major dose of Mr Baumgarten's suggested medicine.

  By Bob Gibson, Friday, November 14, 2008