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Developments in global communication and the increasing popularity and accessibility of new global destinations have made it easier to attract businesses and tourists to and from new emerging markets. As a small nation of three million people on the western edge of Europe, Wales faces particularly keen competition to attract skilled workers, tourists and inward investors from within the UK, and from Europe and further afield. Wales remains one of the poorer parts of both the UK and the EU and the revenue brought through trade, by overseas tourists and from inward investors is vital.
Both the UK Government and the Welsh Government have responsibility for promoting Wales abroad, although the responsibility of the UK Government relates primarily to the promotion of the UK (or Great Britain in some instances) as a whole, whereas the Welsh Government relates to Wales only. Some of the UK government bodies responsible for promoting Wales abroad include VisitBritain, UK Trade and Investment and the British Council.
Our inquiry examined the role of the UK Government and its associated bodies in promoting Wales abroad, with a particular emphasis on tourism, inward investment and trade, and culture.
The Committee's key conclusions and recommendations are:
International tourism
· Wales boasts some of the most spectacular landscape in Britain and Europe, has a unique culture, language and history, dynamic cities, and offers a range of activities and a high quality of life. It is therefore a natural destination for the growing market of cultural and environmental tourists. We are therefore concerned that Wales still has a low profile overseas compared to other parts of the UK and attracts the third smallest number of international visitors of any UK 'region'.
· We believe that a lack of awareness internationally about Wales's strengths as a holiday destination is a key reason for Wales' relatively low share of UK-bound holidaymakers. Wales lacks a coherent brand for the overseas market. Wales needs to be marketed much more vigorously overseas, with a strong and clear narrative about the country's historic and modern aspects and its attractions for tourists. For example, whilst Dylan Thomas centenary events have been organised in Wales, London and New York, they have not been used to promote long-term growth in the number of cultural tourists to South Wales, through attaching the Dylan Thomas brand to the Wales brand.
· We recommend that VisitBritain and Visit Wales work together to develop a strategy, by February 2015, for promoting Wales as a first choice destination for international visitors to the UK. A key aspect of this should be the use of a distinctive brand used consistently in communications to help raise awareness of Wales internationally.
· We recommend that VisitBritain sets clear, measurable targets for encouraging international tourists to visit different regions of the UK.
· We recommend the UK Government review its policy on the VAT rate for the tourism industry, with the ultimate aim of reducing the current 20% rate.
Inward investment and trade
· Nine of the ten poorest regions in Northern Europe are in the UK, including West Wales and the Valleys. The UK also houses the richest—Inner London. The Committee believes that UKTI has a crucial role in helping address geographical wealth inequalities and notes the efforts of German Trade and Investment to reduce disparities within the German state. UKTI should be mandated to perform a similar function.
· Modern broadband alongside the prospect of rail electrification, means that Wales can increasingly offer a lower cost, lower congestion and better quality of life offer to inward investors than London and the South East. We reiterate our previous calls for the establishment of a dedicated trade promotion agency, either sitting within the Welsh Government or as a private sector vehicle working in collaboration with the Welsh Government to drive inward investment projects into Wales.
· We recommend that the Wales Office and Welsh Government seek greater opportunities for joint overseas trade delegations, at both the ministerial and official level, where interests align and to promote Wales internationally as a place to do business.
Culture and language
· The British Council does some good work to promote Wales, most notably with the excellent Welsh Language Project in Patagonia, Argentina. However, there are other parts of the world, including the USA, with a notable Welsh diaspora or where there is an interest in the Welsh language. We recommend that the British Council investigate other opportunities where Welsh culture and language can be promoted to overseas markets.
· We recommend that the UK Embassy in Argentina should have a specific strategic goal to help promote the Welsh language in Patagonia and foster relations between the region and Wales.
· We congratulate all those involved with bringing the NATO Summit to Wales, notably the previous Secretary of State for Wales and the Wales Office, the Foreign and Commonwealth Office, the Welsh Government, and the Celtic Manor Resort. The summit helped to increase awareness about Wales around the world. It is important that the UK and Welsh Government capitalise upon this to bring longer-term benefits to Wales, through investment and tourism opportunities.
In this report, conclusions are printed in bold and recommendations are printed in bold italics.
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