TRAVEL & TOURISM CRITICISES “SHORT-SIGHTEDNESS AND BAD JUDGEMENT” OF CUTS TO DCMS
22 July 2010, London, UK
The organisation representing the world's foremost private-sector Travel & Tourism businesses has reacted with dismay to reports that up to half the staff at the Department for Culture, Media and Sport could face redundancy under government austerity cuts this year. The World Travel & Tourism Council (WTTC), whose Members come from many of the biggest tourism organisations and have significant interests in the UK, is protesting cuts that could "stagnate" growth in the sector.
"Yet again this coalition government has shown incredible short-sightedness and bad judgement. The Travel & Tourism economy is worth £140 billion to the UK, a similar share of GDP to the financial and business services sector (10.1% compared to 9.2% respectively in 2009), but while the latter received a bailout to the tune of £850 billion and still struggles in its lengthy recovery, the government appears to be actively working to stagnate growth in Travel & Tourism."
WTTC points to the UK government's pledge to prevent expansion at London's biggest aviation hub - despite the threat of increasing competition to the title from other European airports - the overreaction to the volcanic eruption, the continuing challenges of visa processes and procedures, and unfair taxation from Air Passenger Duty to a VAT increase which will raise the prices of many of the services offered to visitors.
These, coupled with potential cuts to the department responsible for supporting Britain's leading tourist institutions - and promoting those institutions to the world - could harm the Travel & Tourism industry which supports 3.1 million jobs and attracts £24.3 billion in visitor exports in the UK.
"If it continues down this path, the UK will quickly lose its competitive advantage and find itself fall from the top ten league of international destinations," continues Baumgarten. "We are not asking for a handout, but the private sector needs this government to implement policies that will help it thrive and quickly create new employment opportunities to help bring the UK further out of recession."
WTTC plans to meet with the Prime Minister to raise his understanding of the potential of the Travel & Tourism industry - and the challenges it faces - and get his government's support.
- Ends -
For further information, please contact:
Elliott Frisby
Communications Director
+44 (0) 2074818007
+44 (0) 7891 937931
elliott.frisby@wttc.org
Anja Eckervogt
Communications Co-ordinator
+44 (0) 2074818007
anja.eckervogt@wttc.org
Notes to Editors
- The World Travel & Tourism Council (WTTC) was established in 1990 with Members representing the world's foremost leaders in the private sector of Travel & Tourism. It aims to promote the importance of the industry as a generator of economic growth, encourage public-private partnerships, and persuade governments to adopt policies that will allow the industry to thrive.
- WTTC's annual Global Travel & Tourism Summit brings together over 1,000 delegates to discuss the opportunities, challenges and issues facing the industry, while its' Tourism for Tomorrow Awards recognise the industry's power to be a positive force in sustainability.
- The Travel & Tourism Economy contributes US$5,751 billion to global GDP, 9.2% of the total, in 2010. This is expected to grow to US$11,151 billion (9.6%) by 2020. The industry (directly and indirectly) supports over 235 million jobs in 2010, and the total is forecast to increase to just over 303 million by 2020. Travel & Tourism investment is estimated at US$1,241 in 2010 and should reach US$2,757 billion by 2020.
