Memorandum submitted by BALPPA
INTRODUCTION
1. BALPPA is the leading trade association
representing the UK's commercial piers, theme/amusement parks,
attractions and zoos sector. We speak for some 300 members across
the tourism industry and include leading UK attractions like Blackpool
Pleasure Beach, Alton Towers, British Airways London Eye, Butlins,
Colchester Zoo, Madame Tussauds, Thorpe Park and Woburn Safari
Park among our members.
2. The BALPPA membership covers a wide range
of leisure attractions across the UK. Whilst some members are
large attractions, many of our members are small and often family
run businesses that have operated for generations. No matter what
the size, location or focus of individual BALPPA member operations,
all have a keen interest in promoting UK tourism and ensuring
the long-term sustainability of the industry in the UK.
3. BALPPA welcomes this inquiry and its
objectives in the hope that its work will contribute to the continued
success of the UK tourism industry and consider improvements that
could make it even more successful. Our submission addresses the
position occupied by our Members in the UK Visitor Attractions
Sector.
4. We submit the following six points, each
of which will be clarified later in the submission:
(1) The development and implementation of
a UK tourism strategy spearheaded by the Department for Culture
Media and Sport (DCMS) and VisitBritain encompassing cross-government
support.
(2) A refocus of the work carried out by
the DCMS on behalf of the tourism industry to promote the industry
as a strong and serious contributor to the UK economy.
(3) The appointment of a Tourism Minister
at a level of responsibility which ensures the tourism industry
is always suitably represented when issues likely to impact on
the sector are considered.
(4) A review of a variety of taxation and
financial support measures that are having or are likely to have
a negative impact on UK tourism, particularly the private sector.
(5) Improved funding for tourism statistics
that will provide a more accurate picture of the state of the
industry for analysis and action.
(6) An introduction in the UK of Single/Double
British Summer Time.
THE DEVELOPMENT
OF A
TOURISM STRATEGY
5. The reality of making the most of UK
tourism and reaching the 2010 target of £100 billion has
been jeopardised by a number of factors. Primarily, there is a
lack of support and direction from the DCMS. The Department has
been unable to keep up with developments in the UK tourism industry
and help the industry to reposition itself in the changing political
landscape. Despite two tourism strategies and twice restructuring
VisitBritain, the Department has failed to develop a tourism structure
that takes account of the devolution of the responsibility for
tourism to the Welsh Assembly and Scottish Parliament, as well
as the regional development agencies within England.
6. A strategy which recognises the current
lack of coordination between RDA's and RDP's and provides clear
guidance on maximising tourism opportunities will receive support
across all sectors of tourism.
REFOCUS THE
ROLE OF
DCMS IN TOURISM
7. The DCMS tends to focus its activity
with regards to tourism on the social and cultural aspects of
the UK tourism industry, and whilst these are important aspects
of tourism, the industry should also be viewed as a business activity
that makes a serious contribution to the UK economy. Part of the
problem is that there are resource issues within the tourism directorate
of the Department. Current staffing levels do not reflect the
important role the DCMS should be playing in coordinating the
contribution of Tourism to UK plc. Only 18 full time staff, many
of whom are allocated to duties not directly related to tourism,
are expected to maintain effective liaison, support, direct and
positively influence the efforts of the industry.
8. The DCMS appears to carry less weight
within government than some of the other departments and therefore
seems unable to spearhead joined up thinking across government,
for example with the DCLG or DWP for issues relating to tourism
and has failed to keep up with the challenging environment in
which UK tourism is operating.
9. The combination of poor understanding
of the industry (due to insufficient resource within DCMS) and
across government as a whole, along with an increasingly devolved
approach to tourism means that a significant central resource
to implementing UK wide tourism strategies has not been allocated
in recent years but is essential to maintaining a healthy UK tourism
industry. The devolution of responsibility and resources for tourism
to the Scottish Parliament and Welsh Assembly alongside regional
responsibility for tourism in England to the RDAs has changed
the face of tourism in the UK. This has led to overlaps and competition
between the various organisations, with little coordination between
them on national programmes and initiatives that will impact the
UK industry as a whole. This theme is repeated when one looks
at the role and funding for VisitBritain alongside Visit Wales
and Visit Scotland.
10. Despite the limited financial resources
available to it, VisitBritain has continued to promote the UK
to inbound tourists and England to domestic tourists very well.
With a budget which in real terms is circa 17% less than that
allocated nine years ago, it has performed reasonably well under
severe difficulties. Expecting such performance to continue without
suitably increased financial support is likely to result in the
loss of influence and talent.
11. BALPPA is concerned that the current
spending round will result in a further reduction of financial
resource when what is required is an attempt to close the ever
increasing gap between resources allocated to Tourism and those
allocated to Art, Sport and Culture.
APPOINTMENT OF
A TOURISM
MINISTER
12. The industry considers itself under
represented within government with the consequences of inadequate
funding, a low profile in Parliament and insufficient representation
on issues which whilst not directly related to tourism, could
and frequently do have a negative effect on the industry.
13. The appointment of a dedicated Minister
for Tourism at senior level will address these issues and ensure
that Tourism receives the support deserving of a £84 billion
industry.
EFFECT OF
CURRENT TAX
REGIME AND
PROPOSALS FOR
LOCAL GOVERNMENT
FUNDING ON
TOURISM INDUSTRY
COMPETITIVENESS
14. BALPPA believes that the tourism industry
is under-resourced and that there are an increasing number of
financial constraints that are causing problems for the private
attractions sector in particular. If there is no change in the
situation, the privately operated tourism sector will continue
to suffer. Outlined below are a number of areas where BALPPA has
concerns about the effects of the current tax regime and future
proposals for local government funding in the UK on tourism industry
competitiveness, but also a number of areas that BALPPA has identified
where government could provide assistance to the industry.
15. (a) A key BALPPA concern is that
the UK tourist attractions continue to operate on an unlevel playing
field compared with many of their European counterparts. We believe
that the UK tourism market is not given enough support to compete
with our European neighbours, in particular France and Spain,
which are seen as prominent European tourism destinations. In
order to strengthen the UK market and make it more competitive,
a reduction in VAT on admission income to 5.5% would allow greater
pricing flexibility. As clearly illustrated in the BTA Study on
VAT (1995) such a shift would be tax positive as it would result
in increased visitor numbers.
16. (b) BALPPA also has concerns regarding
the introduction of wider road user charging schemes, whether
regional or national. Visitors to many of the UK's attractions
journey by car. Firstly, visitors are often in family or friendship
groups that fully utilise car capacity and an equivalent trip
by public transport would be prohibited by cost. Secondly, the
public transport network in the UK, outside of London, is not
sufficient to allow visitors to make a reliable journey that will
take them directly to their destination. BALPPA is concerned that
any scheme introduced without providing adequate increased public
transport provision or that will penalise visitors to attractions
despite their cars being used to full capacity will deter visitors
from attractions—another potential blow for UK tourism.
17. (c) A further imbalance is created
for the private sector when one considers that National Lottery
grants and subsidies are available to publicly and charitably
funded attractions but in essence not to private sector organisations
such as our members. BALPPA would like privately run attractions
that are important to the UK's heritage or are of environmental
or education value to be able to successfully apply for funding
that can support their schemes. At the current time, whilst our
members are able to apply for funding under the allocated criteria,
none have been successful in securing monies and many have been
discouraged from even applying.
18. BALPPA is keen to highlight that all
attractions, whether privately or publicly funded, are experiencing
a tough operating environment. Much public money has been wasted
on public attractions of educational and conservational nature
that have now closed because they were poorly thought out in the
first place, and which would not have passed the stage of initial
study in the private sector. BALPPA believes that all those who
act as custodians of the nation's heritage or whose attractions
have environmental and educational value deserve equal access
to funding, irrespective of which sector they operate.
19. (d) A key sector of the UK tourism
industry and of the BALPPA membership operates and maintains the
UK's seaside piers. These unique and important features of our
traditional seaside towns are notoriously difficult and expensive
structures to maintain, and BALPPA is seeking assistance in preserving
and securing a sustainable future for these historic and important
buildings. Given that our members who own piers do not have access
to Lottery Funding, BALPPA is urging government to assist the
piers by reviewing their liability to pay business rates. We have
undertaken research to show the cost of exempting piers from business
rates would come to only £1.7 million per year. Whilst such
a figure would not even register in the Treasury Balance Sheet,
it would prove considerably beneficial in assisting in the maintenance
of our Piers.
20. Piers, along with many other coastal
amusement businesses are facing considerable increase in the cost
of operating licensed family entertainment centres as a consequence
of the Gambling Act 2005. We are hopeful that the existing experience
of the Local Authorities in relation to the responsible manner
in which our Members operate their businesses will be reflected
in their consideration and cost of Premises Licence applications
required under the new Act.
21. (e) BALPPA is seeking for the Government
to grant capital allowances on a wider range of categories that
would apply to tourist attractions. For example, at the current
time, there is an allowance for plant & machinery that will
involve rides at theme parks but it is the wider range of buildings
and infrastructure which provide essential visitor facilities
that are necessary to run a tourism attraction that can cost thousands
of pounds but where no allowance is made for the depreciation
over time and the likelihood of renewal or maintenance in the
future.
22. (f) On a local level, whilst we
are still awaiting the publication of the Lyon's Review into local
government funding, BALPPA and the wider UK tourism industry is
nervous of the suggestion that there may be an optional "bed
tax" for local authorities to adopt if they wish and we would
like to convey the serious impact that this any such tax would
have on the industry, with no guarantee that funds raised would
be ring-fenced and used by local government to assist tourism
in the local authority area.
TOURISM DATA
TO INFORM
GOVERNMENT POLICY
23. Current government statistics are not
sufficient given the size and economic contribution of the tourism
industry in the UK. Once again, this approach leads BALPPA to
believe that the industry is not taken seriously by government.
The continued lack of funding for tourism allocated by the DCMS
is a concern; however there is also insufficient funding in other
government departments that represent tourism interests including
the Office for National Statistics. Improvements here would allow
the ONS to gather the key statistics required to monitor, analyse
and improve the industry by creating solutions based on a more
up to date and informed view.
THE PRACTICALITY
OF PROMOTING
MORE ENVIRONMENTALLY
FRIENDLY FORMS
OF TOURISM
24. BALPPA has been a long time supporter
of the introduction of Double British Summer Time which would
see our clocks moved forward by two hours (GMT +2) in the Summer
months and one hour (GMT +1) in the Winter months, thereby allowing
extra hours of usable daylight. The last two parliamentary sessions
have seen private Members Bills to introduce a change sponsored
by Lord Tanlaw, David Kidney MP and most recently Tim Yeo MP.
A strong coalition of organisations, from across a range of policy
areas, has formed to support at the least an experimental period.
The coalition includes BALPPA, NAHT, AA, PACTS, RoSPA, the Tourism
Alliance and LARSOA.
25. There are strong benefits to be gained
from the adoption of DBST, which include:
— A huge boost for tourism worth up
to £2 billion per annum.
— Energy savings—170,000 tonnes
of carbon emissions would be cut.
— Safer roads—safety surveys
calculate fatalities would drop by more than 100 and other casualties
by more than 400. A fact not disputed by the Transport Minister,
Dr Stephen Ladyman MP.
— Longer hours of outdoor play for
children, potentially reducing child obesity.
— Safer streets—most street crime
occurs when it is dark.
— Extra time to train for and enjoy
the Olympic Games in 2012.
A UK TOURISM STRATEGY
AND LONDON
2012 GAMES
26. On the back of the Welcome>Legacy
consultation concluded by the DCMS recently, a national tourism
strategy should be developed that will allow the opportunity presented
by the Olympics in 2012 to be fully utilised by not only London
tourist attractions, but attractions around the UK. Any such strategy
should by adequately financed and have a clear owner and leader
to coordinate activity at a national, regional and local tourism
level. This will create the right situation for tourism to thrive
in the modern social, economic and political environment.
BALPPA would welcome the opportunity to present
verbal evidence in support of this submission.
March 2007
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