PRESS STATEMENT - 26 October 2007

VISITBRITAIN FUNDING CUTS - TOURISM SOCIETY RESPONSE

Following the announcement by DCMS of their funding allocation to VisitBritain, which will cut funds over the next three years by around 20%, before allowing for inflation, the Tourism Society Think Tank expresses the views of the majority of its members, that this is very harmful to Britain's tourism and fails the public interest of the UK population in optimising the potential social, environmental and economic benefits of Tourism .

DCMS states that VisitBritain is very efficient and effective, but requires that further efficiency savings be made...when VisitBritain activity has a proven high return of nearly 40:1 from Overseas spend.  Investing less will reduce the potential returns, hurt grass roots tourism businesses throughout Britain, and exacerbate the deteriorating Tourism balance of payments.

DCMS states that Britain has achieved record numbers over recent years; this ignores the fact that the average length of stay by an inbound visitor has reduced greatly, so has the average spend, and Britain has underperformed against our international competitors.  Visa charges and Air Passenger Duty are making Britain an unaffordable option for many long haul visitors coming to Europe.  This is a time for more marketing, not less.

DCMS states that much other public funding is being invested in Tourism, principally by the RDAs through their Regional Delivery partners, and by Local Authorities, but those funds are not under VisitBritain's control and generally cannot be clawed back for our international marketing efforts.  Funding for both RDAs and Local Authorities, is being reduced.  VisitBritain is having to spread its limited funds to cover emerging markets, but as a result, investing in our most valuable long established markets has been severely limited; in the USA Visit Britain ranks somewhere near 30th in spend after places such as Portugal, Panama, Peru, Turkey, Spain, Greece, Aruba, Barbados, Bermuda, The Cayman Island, Ireland, and Australia.

DCMS states that they are committed to achieve the best tourism benefit from the Olympic Games, but liaison and media support work has to begin immediately following the Beijing Games in 2008.  VisitBritain has representatives in less than a fifth of competing countries.  VisitBritain will have to fund initial Olympic-related activities from its reduced grant, further reducing its core activities.

DCMS makes decisions about the allocation of funding between its departmentally sponsored activities.  Tourism has been the least favoured under Labour.  In this settlement the Arts received an increase of £50 million - more than the entire VisitBritain Budget.  Under devolution, Tourism is well funded by the home nations of Scotland and Wales.  Yet they, together with London and the other English RDAs all support the need for a strong and co-ordinated overseas marketing effort. 

DCMS has endorsed the  evolution of VisitEngland , under VisitBritain's wing, and funded from its budget.  It is essential that this works with the emerging Partners for England  co-operative entity, supported by the RDAs, English Local Authorities and the Industry.  This requires pump priming funding at its formative stage, not just for marketing, but to achieve all the building blocks for a successful industry - in quality, accessibility, skills, welcome and innovation. With reduced funds, the opportunities are severely curtailed.

The Tourism Society calls on DCMS and the Government to reconsider this very short sighted decision.

-ENDS-

This press release can also be viewed on www.travmedia.com