Hotel chain calls for VAT cut to boost tourism
Travelodge is calling on the government to reduce VAT for the British hospitality industry to 5% to boost the economy.
It reckons that bringing VAT into line with the rest of Europe would create 236,000 jobs by 2015, more than 400,000 by 2020 and boost the economy by £150 million a year.
Travelodge says its comprehensive study into how the UK tourism industry performed from 2007 to 2011 showed that it was one of the fastest growing sectors during the double dip recession.
The report, commissioned by Travelodge and written by Kurt Janson of the Tourism Alliance, showed that tourism revenues grew by 12.6% during the five-year period.
However, it said the Government needed to do more to boost tourism, including cutting VAT on hotel beds.
It claimed that while global visitor numbers were up by 23.4%, inbound visitors to the UK fell by two million in the five-year period.
"The UK is losing out on attracting tourists from fast growing markets such as China, India, Brazil and Russia," it said. "As a result of these missing visitors the report demonstrates that the Government’s target for four million new overseas visitors by 2014 will be one million short at the half way mark."
In addition to slashing VAT, the report called on the Government to bring tourism under the remit of the Department for Business, Skills and Innovation and to reinstate a full time Minister for Tourism.
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
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