Brilliant news for VisitEngland and VisitBritain as the Government has announced that their services will be retained and avoid fatal cuts that will befall other organisations. Budgets will be reduced however; but the extent of these remains to be seen.

VisitBritain chief executive Sandie Dawe said: “I am pleased the Review of Arm’s Length Bodies has recognised the important role of VisitBritain in promoting Britain as a tourism destination around the world. We now await confirmation of our budget next week.

“We have a huge task ahead to deliver the Government‘s ambition to generate a sustained increase in tourism as a result of the 2012 Olympic and Paralympic Games.

“Thankfully we have a clearer mission from Government than ever before and unprecedented engagement from ministers. We have a plan for the Games that is equal to the job and we are already years down the road to success.

“Last year 30 million overseas tourists visited the UK, spending £16 billion – making tourism the UK’s third foreign exchange earner. Spending by foreign visitors is forecast to almost double to £31 billion in 2020, growing 4.4% a year.’’

VisitEngland chief executive James Berresford said: “We are working closely with the tourism minister and his team on his new tourism strategy and will continue to work in close partnership with the industry to deliver a high quality, highly memorable and enjoyable experience for visitors.

“Tourism is a hugely important economic driver and is one of but a few sectors that if properly supported can offer real growth potential. England in particular is a remarkable destination and a real powerhouse in UK tourism. It alone represents 84 per cent of the total UK tourism value, worth £97billion, and supports in excess of 2 million jobs.”

All eyes will now be on the budget cuts, but as one of the fastest growing economies in Britain, it would have been rather short sighted of the Government to rid the country of these organisations.

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.”