Holiday Cottages Blog

The European Tour Operators Association recommends that the UK join the Schengen visa scheme to “double our income for newer markets”  and that tax levels need to change if the UK is to increase its inbound tourism.

ETOA has drawn up recommendations for boosting inbound tourism in response to prime minster David Cameron’s speech last week in which he said he wanted to see the UK in the top five tourist destinations in the world (See previous blog here).

The organisation says tourism should have higher status in government, it also attacked cuts on VisitBritain’s promotional budget.

Executive director Tom Jenkins said: “VAT should not apply to exports. Tourism is an export but the creation of holidays in the UK for visitors from abroad is subject to VAT – that’s clearly disadvantageous to tourism exports.

“However, the creation of holidays for UK residents outside the EU is free of VAT – the VAT regime is insane because there is a massive tax incentive to holiday abroad. This urgently needs to be changed.”

Current Visas to the UK are charged at £68 with forms to be filled out in English, whereas it said we’d become more competitive if the UK joined the Schengen system. 

“Anyone buying a Schengen visa (at a cost of €60) gets 25 countries to visit. If we could accept that visa, then we could start to double our income from newer markets.”

In a recent speech Prime Minister David Cameron promised to have a new tourism strategy in place by the end of the year. The aim of the strategy is to increase the amount of money raised by tourism, which is the third largest industry in Britain.

“Tourism presents a huge economic opportunity,” he said. “Not just bringing business to Britain but right across Britain driving new growth in the regions and helping to deliver the re-balancing of our national economy that is so desperately needed.”

Cameron added that a key part of the government’s strategy is to persuade Britons to spend more of their holiday budget in the UK.

“I want to see us in the top five destinations in the world,” Cameron continued. “But that means being much more competitive internationally. Take Chinese tourists, for example: we’re their 22nd most popular destination. But Germany is forecast to break into their top 10. Why can’t we?”

One of the most striking changes that could be put into place is putting Britain’s clocks forward one hour to align us with continental time. This move would give Britain lighter evenings and longer days, which many in the tourism industry are in favour of.

Chief executive officer Sandie Dawe of VisitBritain said: “We are delighted that the Prime Minister has declared so clearly that tourism is fundamental to the rebuilding and re-balancing of our economy.

“And we share his determination to use the coming decade to boost Britain’s international competitiveness in tourism and to take our industry to a whole new level.

“VisitBritain is already focusing on delivering on these ambitions to build the value of inbound tourism. Our activity contributes £1.1 billion to the economy and delivers £150 million directly to the Treasury each year in tax.”