Falling euro to spark ‘massive rush to book holidays in Europe’
Bosses of domestic travel companies are warning that they will find it hard to compete on price with their European competitors this year due to the falling value of the euro combined with high VAT rates in the UK.
The Government’s plan to abolish air tax for children, starting from May this year, will make it even harder for them to compete, they said.
Calling for a reduction in VAT for tourism to 5%, members of the Cut Tourism VAT campaign said it had the support of over 43,000 businesses and more than 100 MPs.
Dermot King, managing director of Butlins, said: "Unfortunately, the Government’s new measures on APD (air tax) have created an anomaly whereby families who go abroad get a new tax benefit but families who stay at home do not.
"Tourism, particularly domestic tourism, can help drive growth in the UK economy but only if it remains competitive. We urge the Government to reduce Vat on UK holidays to a fair level, so that we can offset the impact of a falling Euro and reduced APD charges."
The euro is now worth just 78p compared with 84p last March, making the Continent 7% cheaper for holidays, said the Cut Tourism VAT group.
"This will almost certainly lead to a massive rush to book holidays in Europe and further afield by thousands of British families. This could have a devastating effect on many struggling UK tourist companies and resorts."
Cut Tourism VAT campaigners say VAT in Britain on accommodation and attractions is three times that of Belgium, Greece, Netherlands and Portugal and twice that of Germany and France. "This makes it more difficult for hard-working families to be able to afford a holiday in the UK," it said.
Out of the 28 EU member states, Britain is one of only three that does not take advantage of the reduced rate of VAT on visitor accommodation and visitor attractions.
David Bridgford, Strategy Director, Merlin Entertainments said: "The UK Government has failed to understand that tourism is a price sensitive export. Their failure to address the UK’s price competitiveness means UK tourism businesses are losing out and the tourism jobs we could create are being exported to our rivals."
Graham Wason, Chairman of the Cut Tourism VAT Campaign said: "The Government has a huge opportunity to boost British exports by lowering VAT. Other European countries, like Ireland, know that helping their tourism industries compete is an investment that will pay major dividends in terms of jobs and extra tax revenue. It’s time for Westminster to recognise the benefits of a lower rate of Tourism VAT."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive