Travel and tourism contribution to UK expected to slow
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The travel and tourism industry’s contribution to the UK economy will slow this year as taxes and regulations continues to hinder potential growth in the sector, a new report has said today.
The World Travel & Tourism Council’s (WTTC) latest report predicts the sector will only see 2.5% growth in GDP contribution this year, compared to the 3.4% increase seen in 2013.
Last year the sector contributed 3.5% to the UK economy and makes up 10.5% of the economy when supply chains are included.
The UK growth is also slower than the global average, with the sector expected to grow 4.3% this year. Globally travel and tourism contributed US$7 trillion to the global economy in 2013 and is said to make up one in 11 of all jobs in the world.
WTTC, led by president and CEO David Scowsill, has now pushed the government to consider reducing Air Passenger Duty (APD) and making more changes to include the UK visa into the Schengen so it can benefit from more tourists and spend.
A refusal to reduce VAT on hotels and restaurants will also hinder the growth, while a decision on increased airport capacity will not be made until next year at the earliest.
“The UK is not taking the potential of travel and tourism seriously enough and is losing out vital income and potentially hundreds of thousands of jobs at a time when creating employment opportunities for young people is vital,” said Scowsill. “Travel and tourism forecasts over the next 10 years also look extremely favourable, with predicted growth rates of over 4% annually that continue to be higher than growth rates in other industries. Capitalising on the opportunities for this travel and tourism growth will, of course, require destinations and regional authorities, particularly those in emerging markets, to create favourable business climates for investment in the infrastructure and human resource support necessary to facilitate a successful and sustainable tourism industry.”
Steps have already been made to relax visa regulations include a ‘super-priority’ 24-hour visa service and an easier form service for Chinese visitors, while other schemes will facilitate simpler travel between the UK and UAE.
Chancellor of the Exchequer George Osborne will make his Budget announcement today where any change in APD would be announced.
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