Positive tourism backdrop for new Culture Secretary

Javid, the MP for Bromsgrove, will be responsible for policy on broadcasting, sport, media, tourism, telecoms, equalities and the arts, as part of the Government’s mini-reshuffle caused by Miller's resignation earlier this week.

In terms of inbound tourism, Javid couldn’t have wished for a better foundation to build on. Figures released today (10 April) by VisitBritain revealed that international visitors spent a record £1.5nn across Britain in February 2014 - a 45 per cent increase on February last year.

Job creation​

The three months to February remain positive with visits up 5 per cent and nominal spend up 21 per cent compared with the same three months a year previously.

“Inbound tourism continues to be the fastest growing sector of the industry, with spend by international visitors forecast to grow 6 per cent a year across the rest of this decade,” said VisitBritain’s chief executive Sandie Dawe.

“Tourism may not be a tangible product, but it’s a major export earner for this country which VisitBritain sells overseas. Last year, earnings topped a record £24bn, which is more than crude oil and cars. And tourism is a major job creator for Britain - for every 18 Chinese visitors who come to Britain, an additional job is created in tourism.”

Helen Grant, the current Minister for Tourism, believes these latest figures are proof that the Government’s current strategy for tourism is working: “These record figures for February show just how well our tourism strategy is working and the valuable contribution the sector is making to economic growth,” she said.

“I am delighted that more people are coming to enjoy the best of Britain and spending their cash. I will continue to work closely with the tourism sector to keep this momentum up.”

Regional support​

Despite the positive backdrop in terms of international tourism, the British Hospitality Association (BHA) is urging Javid to begin his post as Culture Secretary by tackling a decline in domestic visitor numbers.

Great Britain Tourism Survey (GBTS) figures reveal domestic trips fell by over 3 million in 2013, while spending fell to £23.3bn - an £682m decline on 2012.

The BHA’s chief executive Ufi Ibrahim said:  “With a strong economic background, Sajid Javid will be highly welcomed as the kind of big hitter the department needs given the challenges ahead. After two years of growth, this decline coincides with countries like Spain, France and Germany stealing a march on the UK.

“The strong increases by our competitors underline the need for government policy to support improved competitiveness – particularly across the regions.

VAT cut​

The organization is backing a cut in tourism VAT to 5 per cent; to bring Britain into line with most European countries and also wants to see a cross-government group created to promote policy fixes across the House of Commons.

Graham Wason, chair of the Campaign for Reduced Tourism VAT, said:  “A reduction in VAT on tourism would increase our competitiveness with Europe, halt this long-term decline and most importantly, add a much-needed boost to regional hotspots that are undervalued by Westminster.

“Tourism is the only British export subject to VAT, which puts it at a distinct disadvantage to Europe – a disadvantage that is now starting to eat into our prospects for regional growth.”

Staycation nation​

However, a closer look at the GBTS figures reveals that the domestic tourism market isn’t as weak as they may first suggest. Figures in England for 2013 were slightly down compared to 2012 – but it is a bit of an anomaly to compare against, with the Olympics and additional bank holiday impacting on figures.  

The figures actually show that the staycation trend remains strong, with trip numbers well ahead of pre-recession levels.  In 2013, 13 per cent more holiday trips were taken in England than in 2008, and the amount spent was 23 per cent higher in nominal terms (that’s the spend increase without taking into account the effect of inflation; taking inflation into account, the difference is around 9 per cent).

And, despite the report also revealing that the numbers of Brits choosing to holiday abroad is on the increase, outbound travel volumes are still 16 per cent down on where they were in 2008.

A separate report released earlier today by Travelodge​​ pays testament to this positivity. Businesses across the UK are set to benefit from a £2bn boost to the economy as British parents will fork out an average of £478.25 over the Easter holiday, the report finds.