news conference report UKinbound Convention February 9-11 ■ Alton Towers ■ Staffordshire
The inbound and outbound tourism industries are set to work more closely together to fight for the industry as a whole. Chris Gray reports from the UKinbound Convention
United against APD rise
ABTA AND UKinbound are uniting in a “common purpose” of opposing further increases in Air Passenger Duty. The two organisations will work together more closely than ever before to fight government plans to almost double the amount of cash raised from the tax by 2015. The partnership was revealed at last week’s
UKinbound convention, where it also emerged that Abta is working with British Airways, BAA, several tour operators and airline associations on a new APD campaign to be launched before the budget on March 23. UKinbound chief executive Mary Rance told TTGthe move represented unprecedented coop-
ECONOMY. ‘Customers will be shown VAT effect’
THE BOSS of the group that runs the London Eye, Legoland and Madame Tussauds has pledged to tell “every and any” customers about the impact of government VAT increases on his business. Midway Attractions, part of Merlin Entertain- ments, has been highlighting how much of a ticket’s price goes on VAT since the tax increased to 20% this year. Midway managing direc- tor Glenn Earlham said the company was determined to ensure customers knew what proportion of their spending went to the tax- man because France and Spain restricted VAT on vis- itor attractions to 5%. He told the UKinbound
conference: “All our attrac- tions now show prices with and without VAT. We are
12 18.02.2011
highlighting the prices we are charging and the bit the government wants. “We will highlight to everyone and anyone that
these rates are different across Europe.” Earlham was speaking after UKinbound chairwoman Rita Beckwith said the VAT rise was a glaring example of how David Cameron’s pledge to put the UK back in the top five most-visited countries was at odds with his policies. “You cannot increase
Eye owner: clear view of VAT rise
your business if you in- crease prices and slash marketing spend, but this is what the government is doing by squeezing the budget of Visit Britain and increasing VAT to 20%,” she said.
eration between the two trade associations. “We have a common purpose in the APD issue which is crucial,” she said. “It is bringing every- one together. There has been dialogue in the past but we have never worked together in this way.” Rance said both organisations needed to tread
carefully because their members had different interests, but APD united both sectors. The inbound industry opposes APD increases
because it fears the extra cost will push tourists from emerging markets such as China to visit other European destinations rather than the UK. Speaking at the convention, BA’s general manager for regulatory and political affairs, Jim
Forster, said the trade’s APD battle had been hampered by disagreements within the industry. Forster said BA had met Abta and BAA to discuss a new campaign against further increases to the tax rather than arguing over what form the levy should take. “There has been disagreement in the industry, and the coalition has seized on that,” he said. “They see a split and that does not help our case. We are now looking at the amount and do not want that to increase any further. “Taxing people out of the skies is not an acceptable way to deal with the environmental challenge.” Abta refused to comment on the campaign, saying only that it regularly met people in the industry to discuss the subject. Rance said UKinbound hoped
Rance: “We have a common purpose in the APD issue”
SNOW CRISIS. Troops offer was ‘too late’
HEATHROW DID not receive a government offer of troops to help in December’s snow crisis until after the airport was cleared, its boss has said. Chief executive Colin Matthews said the offer of military help came too late as he tried to scotch a series of “myths” about the snow crisis during the UKinbound conference. These included reports that the airport had run out of de-icer, had underinvested in winter equipment and was closed for five days, he said. “We did not say no to offers of help. The gov- ernment did offer troops, but that offer was not made until after the snow was cleared.” Matthews said the final verdict on Heathrow’s
performance in the snow crisis would come when the inquiry he ordered reports back in a few weeks.
He said Heathrow could not have planned for the 12cm of snow that fell in one day. He called for the airport to be given new powers to direct airlines about departures during a similar crisis.
to reduce the impact of the 34% cuts in VisitBritain’s budget by helping the body promote the UK abroad.
ttglive.com
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