Tourism, Visas and Economy!

Shortly after the last election David Cameron did an unusual thing for a British PM: he made a keynote speech on the importance of tourism. In fact he went further, setting out two strategic objectives: to get UK into the top 5 of world destinations (we have been heading south for some time), and to balance what Brits spend abroad with the same level of spending here by foreign visitors and residents.

Much store was put in the “Olympic tourism legacy”- in financial terms, the best way of getting back some of its 10 billion investment. Without a doubt, the first part has delivered: following the Games, people the world over now want to come to London.

Unfortunately, we are in danger of squandering this opportunity to cash in on increased demand because the Government has reverted to type negative by downgrading tourism in the recent years and falling to listen to the industry in to crucial issues: VAT and Visas.

Did you know that VAT the UK is one of only three countries of the EU which doesn’t level a differential rate on tourism services. I was reading that in France tourist pay seven percent VAT on hotel stay; meanwhile in the UK you pay an abolishing 20%. This is without a question one the biggest factor in the UK’s poor price competitiveness.

Now on visas, our biggest new markets are blocked by onerous Home Office cost and regulations. Take for example, China, India, Pakistan, Venezuela, and Japan. Many millions of high spending people from these countries want to come and visit London, but they have an option: €65 for Schengen visa giving access to 26 EU countries, or £80 for a UK one only, requiring, by the way, biometric information and a form in English which takes twice as long to fill out as the prior mention.

The result last year Germany welcomed seven times more visitors then the UK, and France eight times. Neither country has reported problems with economic migrants.

Tourism and Hospitality is the fourth largest industry, employing more than four million people and generating significant value for the country’s economy. It is also the primary employer for youngster hit by the recession.

By complicating the visa system so much that Home Office employee don’t have a clue what they are doing. Suspending Universities Licences and advertising for students not to come to the UK is a very bad move on behalf of the Government. Millions of pounds income is produce by foreign students but I guess Mr PM doesn’t see that as a downside to the economy of the country.

It is very important to address these issues somehow and try it to resolve it in a manner that security is not compromise and our Tourism and Hospitality industry is in save way to a bigger development.

Just a thought....Love to all...

DiL