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Last Updated: Monday, 17 November, 2003, 19:09 GMT
Tourism industry targets Treasury
Beefeaters at the Tower of London
Visitor attractions say the Treasury is getting in the way
The UK tourism industry, only now recovering from two years of crises, is using the CBI conference to lobby for further government recognition.

Culture Minister Tessa Jowell told industry leaders the government was starting to work better with the trade.

Visitor numbers have been increasing this year, swelled by European tourism.

But the industry is worried that the government lacks the determination to invest in crucial areas such as infrastructure and fighting crime.

And tourism officials were particularly scathing about the Treasury, which they say has been milking the industry dry without thinking of the long-term benefits of helping to boost the sector.

In recovery

Ms Jowell used her speech to trumpet a number of achievements in the industry.

The outbreak of foot-and-mouth disease in 2001 - which effectively shut off much of rural Britain - coupled with the decline in global travel after September 11, acted as a spur for reform, she argued.

"[It] made many people acutely aware of the huge importance of the tourism industry... [and] revealed serious weaknesses in the way the tourism industry is organised and the way it is supported," she said.

Since then, the government has helped fund a series of marketing drives, deregulated the tough licensing regime, and formed the Tourism Alliance, an umbrella trade organisation for the widely fragmented industry.

Queues outside Buckingham Palace
Queues are lengthening again after two troublesome years
Now, she said, the emphasis was to be on promoting quality and skills - areas in which she proposed to set up action groups.

In addition, she threw her weight behind London's 2012 Olympic bid, a potential event that has galvanised many in the industry.

'More harm than good'

The industry has broadly given Mr Jowell its support.

"She has a difficult job to do, and by and large she does it fine," said one delegate.

"But the fact is that government generally tends to do more harm than good."

Tourism officials have a long list of grievances, starting with the failure to offer compensation to the industry after foot and mouth, despite doing so for farmers.

The much-touted government policy of abolishing entrance charges for many high-profile museums, introduced at the end of 2001, has also angered many.

Although it has boosted museum visits by up to two-thirds, the net economic effect has been negative, and many argue that only a narrow segment of society has benefited.

Treasury targeted

But the sector's real target is Chancellor Gordon Brown, who is due to speak at the CBI conference on Tuesday.

Robin Broke, head of the Association of Leading Visitor Attractions representing top tourist spots such as Westminster Abbey and Alton Towers, said calls to cut value-added tax on accommodation had gone unheeded.

And government support of tourism initiatives has generally been short-sighted, Mr Broke said.

Visit Britain, the country's main tourism organisation, reckons to make �28 of added economic value for every �1 it is given. "If I were government, I'd be asking how much I was allowed to give them," says Mr Broke.

"Instead, they are asking how little they can contribute."

'Cash cow'

Giving the tourism industry a little fiscal leeway, delegates argued, would eventually pay huge dividends for Treasury coffers.

But officials feel that their �76bn-a-year sector is still regarded as trivial by some policy makers.

Richard Tobias, deputy chairman of the Tourism Alliance, said the Treasury saw the industry as a "cash cow".

In particular, Mr Tobias was angry about reports that Mr Brown may raise airport duties, which he said was a measure that hit poorer travellers hardest.

In Majorca, he said, a similar tax had recently been scrapped after causing a sharp drop in visitor numbers.

"This industry is highly price-sensitive," he said.


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