UK Government Urged to Support £32bn Visitor Economy

A recent report by the British Chambers of Commerce (BCC) and IHG Hotels & Resorts has called for government intervention to ensure the continued growth of the UK’s visitor economy. The document recommends various policy changes to support the tourism, hospitality, events, and attractions sectors.

The report suggests that the government should amend apprenticeship funding in England to encourage further training opportunities. It also recommends reforming business rates, including reducing the multiplier for both small and standard rates. The authors urge the government to reconsider the evidence around tax-free shopping for visitors and its potential benefits on local economies. They also highlight the importance of improving road connectivity to ports and rail terminals to bolster the visitor economy.

In 2023, the UK welcomed 38 million overseas visitors who spent £31.1bn, a figure expected to rise to £32.5bn this year. However, the COVID pandemic and Brexit have decreased the number of available workers for the sector, particularly in seasonal roles. The report emphasizes that addressing these workforce shortages is crucial for the industry’s recovery and growth.

The BCC and IHG Hotels & Resorts warn against introducing visitor levies and tourist taxes, claiming they could discourage tourism. They also call for reinstating tax-free shopping for overseas visitors, abolished in 2020, arguing that its absence could negatively affect the UK’s international competitiveness as a tourist destination.

Alex Veitch, Director of Policy at the BCC, stated that while the recovery of the UK’s visitor economy has been promising, significant challenges remain. He underlined the importance of a robust skills strategy and a supportive immigration system to address workforce shortages in hospitality.

Yasmin Diamond, Executive Vice President of Global Corporate Affairs at IHG Hotels & Resorts, stressed the importance of a strong partnership between industry and government to ensure the visitor economy thrives and contributes to the national GDP.