hoTeLs


Lowering VAT would increase UK’s competitiveness


ufi ibrahim is chief executive officer of British Hospitality Association


Luxury hotel plans for The mall


Admiralty Arch – the iconic gateway between The Mall and Trafalgar Square in the heart of London – is to be transformed into a luxury hotel and restaurant. Built in 1912 as a memo-


A


s we approach the end of the year, the Campaign for Reduced Tourism VAT, is stepping up its work. In today’s global tourism


market, the current rate of 20 per cent VAT undermines UK tourism’s ability to com- pete effectively. Reducing VAT on tourism services to 5 per cent would increase UK competitiveness, create jobs and grow GDP. Tis is the message we are urging on the Treasury in our talks with ministers and offi- cials. In particular, reducing VAT on key tourism services such as visitor accommo- dation and entry to attractions would: • Boost GDP by £4bn a year • Create 78,000 jobs • Deliver £2.6bn in tax over 10 years We have strong evidence that cutting


tourism VAT is one of the most efficient, if not the most efficient, means of generat- ing GDP gains at low cost to the Exchequer. Tere is also strong evidence of a clear rela- tionship between the high rate of VAT and the decline in UK competitiveness. Out of 27 EU member states, only four


(Denmark, Lithuania, Slovakia and the UK) do not take advantage of a reduced rate of VAT on visitor accommodation, while the UK is one of only 10 countries that applies the full rate of VAT on admissions to cul- tural attractions. Fourteen countries have a reduced rate for restaurant meals. In spite of the recession, there have only


been marginal increases in VAT rates for accommodation and attractions in the EU in the last four years, confirming that tour- ism is highly price sensitive and is damaged by high rates of taxation. Te argument for a reduced rate of VAT on


tourism services is strong, but it needs even more support from members of the industry. Te Campaign for Reduced Tourism VAT, led by the BHA, BALPPA, Bourne Leisure and Merlin Entertainments, is supported by over 300 other stake holders. But what is now needed is for members


of the industry to add their weight to a campaign that will create jobs and benefit competitiveness, by registering their sup- port on www.cuttourismvat.co.uk. Te time for action is now.


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rial to Queen Victoria, the historic Grade I building has been leased by the UK gov- ernment to Spanish company Prime Investors Capital (PIC) for a period of 99 years. PIC is a private equity


group run by Spanish prop- erty developer Rafael Serrano Quevedo. It is believed the group paid around £70m for the property. Although exact details of the hotel have yet


Te new hotel will be located on the top floors of Admiralty Arch


to be confirmed, it is thought that the hotel will have no more than 100 rooms and a pan- oramic restaurant and bar at the top. Due to its location – rooms will offer views of both Trafalgar Square and Buckingham Palace


– the landmark property is likely to become an instant destination when it opens in 2014. Rafael Serrano said that the 100-


year-old, historic building’s period features will be ‘painstakingly preserved’ and respected during the conversion work. Details: http://lei.sr?a=q3F0q


New boutique hotels to open in England David Toulson-Burke, Ian Cross and


Te House Collection, a new group of bou- tique hotels, is set to open its first properties in the east of England. Te company has been set up by three for-


mer members of the senior management team at the Belfry hotel in Warwickshire.


Jonathan Baker aim to create a portfolio of unique ‘luxury house hotels’ with no more than 45 bedrooms. Te first hotel will be the Poet’s House in Cambridgeshire, which will open in March 2013. Details: http://lei.sr?a=g8o1J


London hotels avoid Olympic slump


London hotels avoided a feared post-Olympic slump in September as occupancy lev- els increased by 3.1 per cent on September 2011 levels. Te latest HotStats survey


by TRI Hospitality Consulting found that despite a year- on-year decline of 3.2 per cent in average room rate (from £141.82 to £137.26), the increase in occupancy levels resulted in a 0.6 per cent increase in RevPAR for the month. During the same period, Total Revenue per Available Room (TrevPAR) increased by 1.3 per cent, under- pinned by a strong increase in non-rooms revenue of around 19 per cent. While the strong performance can in part


be attributed to the success of the Paralympic Games, London also witnessed a late increase


Read Leisure Opportunities online: www.leisureopportunities.co.uk/digital


London hotels saw increases in occupancy despite fears of the contrary


in visitors as data reveals that the increase in occupancy levels was underpinned by a 22 per cent increase in leisure-related demand. Jonathan Langston, MD of HRI, said: “Te


strong start to the year, in addition to the performance in August and September, has guaranteed growth in 2012.”


Twitter: @leisureopps © CYBERTREK 2012


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