Memorandum submitted by Scottish Tourism
Forum
The Scottish Tourism Forum represents trade
associations, marketing groups and companies in Scottish tourism,
with our members having in the order of 6,000 companies between
them. The Scottish Tourism Forum is the equivalent of the English
Tourism Alliance and the Wales Tourism Alliance, representing
private sector and operators' views.
I hope that you are prepared to accept this
letter and our recent submission to the Scottish Parliament's
Enterprise and Lifelong Learning Committee's Tourism Inquiry as
evidence for the Select Committee's Inquiry. The delay in our
submission emanates from my participation in the UK Tourism Summit
in South Wales earlier this week, where industry views were sought
by the national tourist boards on the role of government.
In response to the specific questions raised,
we have the following comments to make:
CURRENT AND
FUTURE PERFORMANCE
OF TOURISM,
FOLLOWING FOOT
AND MOUTH
AND SEPTEMBER
11
Whilst Foot and Mouth had a severe impact during
2001, there appears to be recovery in the sector, and Scottish
Executive research indicates limited lasting impact. What FMD
demonstrated however is the interdependence of tourism with significant
other parts of the economy, not only the rural economy. The impact
of September 11 is more lasting, especially in the American market,
although we acknowledge that wider economic considerations and
geopolitical uncertainties also impact, particularly on the US
market.
Probably more importantly, however, the UK is
in danger of losing competitive positioning in world tourism terms
for a number of reasons which go far beyond FMD and September
11. Long term decline in the UK's appeal and competitiveness in
leisure markets are caused by exchange rates, the regulatory and
tax regime, high levels of VAT against other European destinations
(evidence already provided by the English Tourism Alliance) and
a failure to invest adequately in new products.
The current balance of trade deficit in tourism
terms will continue to deteriorate if UK residents cannot find
value for money and quality comparable to the best offered abroad.
DOES GOVERNMENT
HAVE A
ROLE IN
PROMOTING AND/OR
SUPPORTING TOURISM?
Much of the onus on improving the tourism product
lies with the commercial sector, but a widespread frustration
in the industry lies in the failure of Government to recognise
that the fiscal and regulatory regime is a disincentive to investment
in new product, in staff training, better quality standards and
enhanced marketing. Currently, UK VAT is second highest in Europe
and additional taxation through eg Air Passenger Duty, adds to
the burden of making the UK uncompetitive.
Government's role is therefore crucial in sustaining
the tourism industry and supporting Scotland's competitiveness.
WHAT SHOULD
THE ROLE
OF GOVERNMENT
BE?
The Scottish Tourism Forum endorses the English
Tourism Alliance's Tourism Spending Priorities report of
April 2002. Our own submission to the Scottish Parliament's Tourism
Inquiry (September 2002) catalogues a series of recommendations
in section 27 which Holyrood and Westminster can take.
Specifically, we recommend:
— Ensure that regulation and fiscal
policy derived from Westminster is evaluated for its impact on
tourism in the UK and Scotland; and specifically,
— Urge the Chancellor of the Exchequer
to review VAT levels on tourism services, especially on accommodation
(as taken up by 12 of the 15 EU member states); and
— Urge the Chancellor to reinvest revenue
from Air Passenger Duty back into air transport security and tourism,
as well as funding of additional public service obligations for
air routes and route development.
In addition, the role of the BTA is crucially
important in driving UK tourism marketing and the positive working
relationships of the BTA with the national tourist boards must
be exploited to the full. We also believe that the BTA should
be made more accountable for delivering Scottish, Welsh and English
regional targets.
CURRENT ARRANGEMENTS
FOR SUPPORTING,
PROMOTING AND
REGULATING THE
INDUSTRY
Our view is that the devolution arrangements
work effectively. There are issues about the need for more investment
in overseas marketing both by the BTA and national tourist boards,
and we argue the case for raising VisitScotland's (the Scottish
tourism board) revenue from its current allocation of less than
£33 million to at least £50 million per annum to sustain
a presence in overseas markets. We commend the BTA One Million
Visitor Campaign and the partnership funding route applied in
this case; it is essential to acknowledge however that government
investment is necessary in overseas marketing and the equation
is indeed a simple one: the more that is spent marketing overseas,
the more visitors choose the UK as a destination.
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