Memorandum submitted by the Association
of Leading Visitor Attractions (ALVA)
The Association of Leading Visitor Attractions
(ALVA) currently has 41 members who manage some 1,586 of the 6,000
odd sites throughout Britain. ALVA's members collectively receive
over 100,000,000 visitors a year. They are an interesting mix:
some are public, others are in the private sector; some charge
for admission others do not; some operate seasonally, others all
the year round. Their disciplines are also very different: cultural,
heritage, history, conservation, commerce and divinity! From experience,
this diversity is a positive strength rather than a weakness.
Arguably these iconic sites represent the "Jewels in the
Crown" of Britain's tourism industry.
ALVA held its inaugural meeting on 10 July 1989
and was incorporated as a Company Limited By Guarantee on 2 April
1990. In October that year the former Tourism Minister, John Lee
(now Lord Lee of Trafford) was appointed as Chairman. In 1999
His Royal Highness The Duke of York became President of ALVA.
In 2001 ALVA played the lead role in facilitating the formation
of the Tourism Alliance and is represented on its Board. In 2003
ALVA set in motion the planning for the First National Conference
of Visitor Attractions which was held in October 2004.
"ALVA seeks to represent to government,
the tourism industry, the media and the public, the views and
achievements of this country's foremost visitor Attractions in
matters which concern the effectiveness of UK tourism and the
interests of the Association, whilst promoting co-operation and
high standards of visitor management among members".
SPECIFIC TOPICS
FOR ORAL
EVIDENCE SESSION
ALVA wishes to see the Tourism cake grow larger
so that each slice may be more generously proportioned and the
balance of trade deficit for tourism stabilized at minus £17
billion and then reduced. For this to happen it is necessary for
the Government to Take Tourism Seriously and place it far higher
up its list of priorities. This would be a good thing to do on
many counts, but not least because this nation is dangerously
reliant on the income produced by the financial sector, which
is currently some 25% of the total GDP. In support of these aims,
ALVA submits the following eight topics:
1. Investment in VisitBritain
The Grant-in-Aid to VisitBritain has not increased
for the past eleven years, which means, of course, a year-on-year
cut in real terms. In addition, in April 2003 VisitBritain assumed
responsibility for the development and marketing of England to
the British. The evidence generated by the Million Visitor Campaign
and the results of the England Marketing initiatives to date demonstrate
convincingly that investment in tourism marketing is effective
and brings a direct return to the Treasury. ALVA looks to the
Government to re-invest taxpayers money in the institutions it
has created and to recognise that backing winners, such as tourism,
is a wise decision. ALVA will work with and support VisitBritain
and it looks to the Government to do the same.
2. Social Infrastructure
The social environment in which tourism operates
is of increasing concern. Public services in general have become
noticeably inadequate. Both citizens and visitors have a right
to expect and enjoy a safe and clean environment.
Central and local government need to ensure
that adequate resources are allocated to these core, essential
services. Local authorities play a key strategic and operational
role in maintaining a high quality physical environment. They
need to be adequately resourced to ensure that this responsibility
is rigorously executed. The quality of the public realm is an
important issue that must be addressed.
Yet with so many competing priorities, it is
often the public space and amenities so important to tourists
that are the first to face the cuts. Local tourism businesses
are right to protest when yet another Public Convenience is closed
through lack of will or public funding.
Furthermore, ALVA supports additional funding
for the work of the Homelessness Directorate to address social
and environmental blights of begging, vagrancy and homeless street
sleepers. Tourists come to this country for an enjoyable holiday
rather than to be confronted by our welfare challenges. This battle
has not yet been won.
3. Daylight Hours
ALVA welcomes all proposals to advance time
in England and Wales by one hour throughout the year (GMT + 1
hour in winter; GMT + 2 hours in summer) This measure would have
a major impact on road safety, produce worthwhile energy savings
and should have a beneficial effect on child obesity. The extra
hour of "accessible" daylight in the spring and autumn
months would also have the helpful effect of extending the tourist
season. It is estimated that this could bring up to £2 billion
additional revenue to tourism.
4. VAT
ALVA remains concerned that the fall in the
UK's market share is partly attributable to a fall in its price
competitiveness relative to other countries. This we contend is
to some degree due to the high levels of taxation. We support
the Government's overall stance that taxation where possible should
be imposed on the end-user rather than through direct central
taxation. However, we note that the impact of the VAT regime,
combined with rising employment costs, further adds to the distortion
and competitive pressures on the industry.
The EC 6th VAT Directive sets down as one of
its goals the harmonisation of VAT rates across the European Union.
When achieved this will decrease distortions within the EU's tourism
markets and should encourage fairer competition. However, this
goal will take time to achieve. In the meantime, the majority
of member state governments have chosen to apply differing rates
to tourism services.
The VAT rate on tourism services is higher in
the UK than in all but one of the other member states. Reports
by VisitBritain in 1996, and other organisations subsequently,
have found that European states with higher rates of VAT on visitor
accommodation experience significantly slower growth in their
international tourism receipts than those that levy a lower rate.
The UK's high rate disadvantages its tourism
businesses relative to most of our EU competitors. ALVA calls
for a VAT reduction on, in the first instance, tourist accommodation
to help boost price competitiveness (assuming no changes in other
EU destinations).
5. VAT on Property Repairs—Heritage
Buildings
Another area of concern relates to the issue
of VAT on property refurbishment in general and on repairs to
historic properties in particular. We support the idea of reducing
the rate to 5% to decrease the differential between the refurbishment
of older properties and new buildings, and between VAT registered
and unregistered businesses.
We also see an opportunity to reduce the rate
of VAT on listed building repairs to provide an incentive for
their maintenance. Two-thirds of Britain's heritage is in private
ownership; these sites contribute £1.2 billion to the national
economy, but currently there is a £490 million backlog of
repairs to privately owned and National Trust historic buildings
(data from "Valuing our Heritage", published in 2007).
As well as VAT reform, the provision of fiscal relief for the
maintenance of historic properties that provide public access
would help stimulate much needed investment and preserve the heritage
tourism resource. It is interesting to note that 66% of visitors
from China and 72% from Russia cite our historic castles, houses
and gardens as a top priority for choosing to visit the UK.
6. Gateway London
London has a clear "gateway" role
for England—stipulated in the Greater London Act. It also
has a "gateway marketing and packaging" relationship
with Wales, Scotland and Northern Ireland. For such key reasons,
London needs adequate resourcing through strong investment in
the necessary infrastructures as the capital destination.
The capital is overwhelmingly the starting point
for many tourism routes that link London to the UK Regions and
Nations. The relationship that London has with the regions must
be reciprocal with investment flowing out to the regions as well
as back to the capital. This relationship needs to be developed
further, and kept under constant review. The overall London economy
has been growing faster than the rest of the UK for most of the
past 17 years. The result is that London currently makes a net
contribution to the Exchequer of at least £20 billion per
annum.
Particularly where tourism is concerned, London
is a national asset and a "flagship" product of the
UK. As such its economy, infrastructure, environment, societal
well-being and cultural life are all inter linked and relevant
to the overall tourism experience of its visitors. Increasingly
"traditional" tourism blurs into leisure; both are essential
in maintaining the city's vibrancy.
7. Free Entry to National Museums
If the National Museums are to remain free,
then the Government must fund them fully so they remain top class
and attract visitors to this country. The costs of running Museums
rise more quickly than simple inflation. The cost of new acquisitions
climbs ever faster. The demands for state-of-the-art visitor facilities
increase annually. If the grants-in-aid do not keep up, in due
course our great Museums will cease to be truly first X1. This
will impact on the whole tourist industry.
8. Transport
ALVA recognises that the UK's heritage and countryside
are a vital resource for the wellbeing and cultural identity of
the nation whilst also being the major attraction for international
visitors. ALVA further recognises that the car is at its most
efficient when used by a family for an educational/leisure day
out in the countryside, accepts that public transport cannot provide
the solution outside urban areas and hopes that others, regardless
of their individual agendas, will be honest enough to acknowledge
this reality whilst working towards a sustainable future.
October 2007
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