Tourism Society Winter 2011

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The Tourism Society Queens House, 55-56 Lincoln’s Inn Fields, London WC2A 3BH T 0207 269 9693 F 0207 404 2465 E journal@tourismsociety.org W www.tourismsociety.org Registered in England No. 01366846. ISSN: 02613700 Designed and produced by Script Media Group Contact Tony Barry 47 Church Street Barnsley S70 2AS T 01226 734333 E tb@whpl.net W www. whpl.net Š Copyright 2011 The Tourism Society Tourism is the journal of the Tourism Society.The views expressed in Tourism are those of individual authors and not necessarily those of the Tourism Society. Whilst unsolicited material is welcomed, neither transparencies nor unpublished articles can be returned.

The Tourism Society cannot be held responsible for any services offered by advertisers in Tourism. All correspondence must be addressed to the Editor.

Tourism is only available to members of the Tourism Society and on subscription, it is distributed quarterly to 1800 professionals working in national and regional tourist boards, local government, travel agencies, and tour operators, visitor attractions, accommodation and catering, entertainment, information services, guiding, consultancies and education and training.

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Contents

Editorial The industry of the future Tourism is, without doubt, the industry of the present but, more important, it’s the industry of the future, too. As contributors point out, tourism will become even more important in the next twenty years with many more people travelling and new destinations opening up. How will this affect Britain?

It is vital that we take advantage of this growth in demand, so that Britain’s share of the international tourism market can grow with it. And with that growth will come more jobs.This needs investment by both the private and the public sector. No-one can gainsay the £25bn-plus that has been poured into new and refurbished hotels in the last decade; Britain’s attractions have also expanded hugely while our restaurants are gaining a world-wide reputation.

But tourism cannot thrive unless it has the support of Government, at both a national and local level. With the prime minister’s personal support, this Government has a deeper understanding of tourism’s value to the British economy and the need to encourage its growth.

But significant barriers to growth exist.The high rate of VAT on hotel accommodation, attractions and restaurant meals compared to almost every other EU member state makes Britain sink to the bottom of the world’s price competitiveness league. High rates of air passenger duty deter travel.Visa costs and controls inhibit many thousands of potential visitors entering Britain from important source countries.These barriers need to be removed if tourism in Britain is to grow and if jobs are to be created.

And at a local level, hospitality and tourism must be viewed for what it is – a major source of employment and a significant wealth-creator for every one of the 406 local authorities in the country.

There is much work to be done if Britain is to gain the full benefits of the industry of the future.

Ufi Ibrahim MTS | Chief executive, British Hospitality Association

Government’s View: Industry, Government and opportunity coincide 2-3 John Penrose MP, Minister for Tourism and Heritage, Department for Culture, Media and Sport Inbound: Removing barriers will maximise the opportunities Mary Rance FTS, Chief Executive, UKinbound

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The View from Brussels: Implementing the European Commission’s Tourism Policy Julie Russell FTS, National Expert, European Commission, DG Enterprise and Industry London & Partners: London reaching for gold in 2012 Dame Judith Mayhew Jonas, Chair of London & Partners

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Legal: Proposed legislation to help boost Britain’s tourism Stuart Sutton MTS, Partner and Head of the Regulatory and Compliance department, Linder Myers LLP

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Global Travel & Tourism in 2012: Resilience amidst revolution and recession David Scowsill, President & CEO,World Travel & Tourism Council (WTTC)

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Aviation: Let’s not fly in the face of reality Nigel Milton, Director of Policy & Political Relations, BAA Ltd.

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Case Study: Malaysia 12 Dato’ Sri Dr. Ng.Yen Yen, Minister of Tourism, Malaysia, and Abdul Rauf Abu Hassan MTS, Director UK & Ireland, Malaysia Tourism Promotion Board Consultants’ Outlook: Business Tourism – Rebirth of the meetings industry?

John Gallery FTS, Director, Great Potential Business Tourism Specialists

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numbers down on two years ago. Everyone present is looking at how to get more visitors into Scotland and then to come North. When the statistics for this year finally come out I shall be interested to see if these two divergent views are reflected in the numbers. I suspect they will be because it is a dilemma as long as tourism has been a serious business. How do you get people out of London and around the rest of the country?

Two things might help, one positive and one negative.The positive is the Olympics. I have always thought that visitor numbers next summer into London would not show much of an increase because

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Prospects for Destinations: Contrasting destinations share optimism despite challenges 14-15 Cath Hindle MTS, Head of Development, NewcastleGateshead Initiative; Hayley Beer MTS,Tourism Services Manager,West Oxfordshire District Council; Paula Harbidge MTS, Senior Tourism Officer,Thanet District Council Hospitality:The VAT cash cow Craig Stewart MTS, Director, freetobook

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Events Diary

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Membership News

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From the President’s Desk A chance meeting with an old friend in the incoming tour operator business finds him smiling and happy. He is having, he tells me, his best ever year on record. His problem is finding good venues for all his clients and getting reimbursed by the Vat man.The main reason for the boom in visitors is the depreciation of sterling and the consequent value of London as a destination, although whether this happy state will continue in the face of the euro crisis is a moot point.Two days later I am at a dinner in Wick hosted by VisitScotland’s new Chairman, Mike Cantlay. Here the story is quite different. It has been another modest year with tourism receipts still flat and

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those who are not into the Olympics will avoid London so that Olympic visitors will be a replacement.They are an opportunity to offer alternatives in the UK.The negative is the mess we are making of tourism entry into the UK such as downgrading the Gatwick Express.

This should encourage visitors to go direct to other gateways, particularly Scotland.

Although everything looks pretty bleak I have a sneaking feeling next year will be pretty good all round.

Here’s hoping!

Lord Thurso MP FTS | President,Tourism Society

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Government’s View Industry, Government and opportunity coincide It is, I believe, something of a tradition that a Government minister writes a piece for the Tourism Society’s journal at this time of year, setting out some thoughts on the industry’s prospects for the coming twelve months. And I’m very pleased indeed to continue this tradition.

The Tourism Society has a wonderfully well-informed membership and it really is an honour to get the chance to drop you a line or two.

The Society, of course, is more than thirty years old and I’m bound to wonder what previous ministers might have said when they had their chance. Did one of the early ones foresee the impact that the internet would have on every aspect of the industry, from Viewiimarketing to booking and even to providing a free and easy forum for commenting on customers’ experiences? I doubt it.

Did my 1999 counterpart predict a glittering success for the Millennium Dome following on from what he or she might have tipped as an opening event to astonish the world? Very likely.The point is, of course, that predictions are a dangerous business.Things happen.

Sometimes they’re bad, like natural disasters or economic downturns that touch the lives of millions, and sometimes

they’re good like the emergence of a technology that turns all our old habits on their head, or a leader or a new regime emerging in a country that redefines that place in people’s eyes the world over.

But for all that, I think – and hope – that I can offer a reasonably confident forecast for 2012. And that’s because we have a

‘Did my 1999 counterpart predict a glittering success for the Millennium Dome following on from what he or she might have tipped as an opening event to astonish the world?

Very likely.The point is, of course, that predictions are a dangerous business.Things happen. Sometimes they’re bad, like natural disasters or economic downturns that touch the lives of millions, and sometimes they’re good like the emergence of a technology that turns all our old habits on their head, or a leader or a new regime emerging in a country that redefines that place in people’s eyes the world over’

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pretty strong triangle of factors that are coming into play at exactly the same time. At one corner there’s the industry itself which, on the evidence so far available, seems to be dealing with the downturn with a real vigour. Visits to the UK from overseas residents increased by 7 per cent in the second quarter of 2011 as compared with the same period in 2010, while spend per visit was 3 per cent higher in the year up to August this year than it was in the year up to August 2010.

And over the last year, the UK has risen to third in the Nations Brand Index – improving global recognition that should give us real confidence for the critical period lying ahead. As well as this, domestic visitor spend in the first six months of 2011 was up 10 per cent on 2010.

Meanwhile, the second corner of the triangle is what the Government has done.

The difference here – between what we have set out to do and what my predecessors might have had to work with – is

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largely, I think, a question of attitude and commitment. And for the first time in living memory, it’s come from the very top.

The Prime Minister himself gave me my orders. He asked me to ‘work with the sector to produce the strongest possible tourism strategy … to take tourism in Britain to a whole new level’. Indeed, when I published my tourism policy paper back in the spring this year, both David Cameron and Chancellor George Osborne put their names to it.

And unlike policy papers in years gone by, where an ounce of practical proposals is padded out with a pound of aspirational waffle, we’ve worked up the ideas, listened to what the industry thought and then got on and started work.

Real work. So, along with a string of measures on things like making visa applications easier for people from our key overseas markets and addressing the market failure inherent in the existing tourist board structure, we also put in place a series of marketing strategies to promote the UK worth more than £150 million overall.

We’ve also made deregulation of the industry a priority, moving to cut away or simplify dozens of rules and miles of red tape that have been choking the industry for decades. And in the same vein we’ve taken a long hard look at the Licensing

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Act and the effect it’s had on entertainment and live music in this country, one of the key factors in creating a successful hospitality industry. Our clear intention here is a simple one: giving more or less all the licensing requirements in this area the chop.

the sensational ‘Great’ campaign in countries all around the world to bring in overseas visitors. And we’ll be hosting an international summit for world tourism ministers just to make sure that no one is in any doubt that we are well and truly back in business.

This won’t, by the way, be a green light for unlimited raves, lap-dancing clubs or anything else that’s patently counter-productive to making the UK a great place to visit.That’s why I said ‘more or less all’ just now. And we won’t be touching the alcohol licensing regime either, but most of the rest is, frankly, just bureaucracy for its own sake and we want to scrap it, and we do so safe in the knowledge that this is also what the tourism, hospitality and entertainment industries have been calling for.

And if (I’m not going to say ‘when’, just in case) all this comes together and we’re all sitting round a year from now bathing in the warm glow of success, then we’ll have laid the foundations for a really substantial piece of work. Because next year is just the beginning.Tourism is, and will continue to be, vital to Britain’s economic growth.

And as for the third part of our triangle – well, that’s obvious isn’t it? It’s the opportunity that comes next year for the tourism industry in the UK. London 2012, the Cultural Olympiad and of course Her Majesty’s Diamond Jubilee will put us in the spotlight as never before. And with just months to go, I think we’re in very good shape.

VisitEngland will be promoting our country at home as a domestic tourist destination, while VisitBritain will be rolling out

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Already our fifth biggest industry, accounting for 1.7 million jobs, and bringing in a combined total of £115 billion a year to the economy, there is plenty of potential, using next year as a springboard, to do even better.

Put simply, tourism has the potential – especially if we can crack the mega markets of India and China – to be one of our fastest-growing industries over the next ten years and to support as many as three million jobs by 2020.

So I’m about as optimistic as it’s possible to be that the prospects for our industry next year are good. Let’s see what we can do to make it happen.

John Penrose MP| Minister for Tourism and Heritage, Department of Culture, Media and Sport

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Inbound

Removing barriers will maximise the opportunities To date 2011 has been a relatively positive year for inbound tourism, led by the resilience of London.Visitor numbers and spend grew earlier in the year, helped by a sharp rise in visitors from the BRIC economies.This growth slipped back in August, normally a peak month for inbound tourism, not the result of the dampening effect of pictures of rioting which were published worldwide, which had a negligible effect on cancellations, but the result of the decline in the number of bookings already in place at that time.The onset of autumn saw the industry working harder than ever to retain and secure new business to the UK. Business was brisk at World Travel Market with many operators reporting particular interest in the UK in 2013.

Looking forward, all eyes will be on the UK in 2012 with the Queen’s Diamond Jubilee and the Olympic and Paralympic Games. In terms of how this will impact on inbound travel to the UK, early indications suggest that visitor numbers are certainly not guaranteed. In fact, forward bookings are either no better or worse than 2011. Inbound tourism could lose hundreds of millions of pounds to the UK economy at a time when the industry would normally provide a significant opportunity to rebuild and rebalance the UK economy. If visitor numbers fall only by a modest level of 5% over the year, which is the benchmark given by many in the industry to date, this will result in a loss of 1.5 million visitors and a reduced contribution of £0.75 billion to the economy.

The issues challenging the “regular” visitors in 2012 are well documented. Whilst there is always a perception for an Olympic host city that the destination will be overcrowded and overpriced, London has an abundance of existing and new bed stock but much is “on hold” to

Let’s celebrate our source markets LOCOG until March 2012. Demand for London and the UK is still there but without a ready supply of accommodation at commercially viable prices, that interest cannot be converted in a timely manner with the result that some long-haul destinations such as Japan and the US have already ruled the UK out of their itineraries for 2012.

Compounded by the global economic downturn and crisis in the eurozone, dark clouds are gathering on the horizon and already there is word of regular business channels, particularly from the Southern European markets, showing signs of constraint through lack of disposable income.

Yet the UNWTO estimates that despite the downturn, international tourism will continue to grow at a compound rate of 3.3% per annum between 2011 and 2030. Our own Government has set ambitious targets for growth, 4 million additional visitors to 2014 and

‘If visitor numbers fall only by a modest level of 5% over the year, which is the benchmark given by many in the industry to date, this will result in a loss of 1.5 million visitors and a reduced contribution of £0.75 billion to the economy’

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Mary Rance FTS | Chief Executive, UKinbound

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an additional £2 billion of spend.

The big dampeners on the inbound industry’s prospects are the way in which Britain’s competitiveness on the world stage has been dented by the barriers which a succession of Governments have put in place and fail to address.These are the crippling level of aviation taxation, the highest in the world and set to rise again in 2012 by double the rate of inflation, the complexities of the visa application process for many of our emerging markets, the lack of capacity at UK airports, especially in London and the South East and the punitive VAT rate of 20%.

As we face a very challenging year in 2012, now more than ever the Government needs to back its support for the industry with some real action.

With the right support and economic stimuli, inbound tourism can help drive the recovery by attracting more overseas visitors, in turn leading to the creation of new jobs.The fear is that unless the Government acts now when the showcasing opportunities with the key events of 2012 are in alignment, the opportunity will be lost.

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The View from Brussels

Implementing the European Commission’s Tourism Policy Tourism is the European Union’s (EU’s) third largest economic activity, directly generating five percent of GDP and employing over 5% of the EU’s workforce, (almost 10 million people).

Although not unscathed, it has remained one of the strongest industry sectors during the financial crisis and is proving to be an important driver for many European economies.

With the entry into force of the Lisbon Treaty in December 2009, the European Union now has legal competence to support, coordinate and complement action by the Member States in the field of tourism.

In line with the Lisbon Treaty, the Commission published its tourism policy in the June 2010 Communication "Europe, the world's No 1 tourist destination – a new political framework for tourism in Europe", which proposes 21 actions with a high European added value to benefit all EU countries.The objective of these actions is to support sustainable growth and maintain Europe's leading position as a tourism destination.

The Commission is implementing these EU-led activities in cooperation with Member States and other tourism stakeholders.They can be broadly grouped as follows.

1. Promoting tourism growth – by encouraging international tourist flows into Europe and cross-border tourism by European tourists within Europe The Commission has signed a joint declaration with the European Travel Commission (ETC) and its member National Tourism Offices agreeing to work collaboratively to promote Europe, as a destination in emerging long-haul markets. On 1 December 2012, they hosted an inaugural joint event in Beijing to launch the 'Travel destination Europe' and 'visiteurope.com' portal in China.

Commission initiatives aimed at extending the seasonal spread of tourism include: the CALYPSO programme for low season tourism exchanges between Member States for certain disadvantaged target groups; a pilot project, developed in coopera-

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tion with Member States, airlines and industry representatives, to encourage low season tourism flows between South America and European countries based on strong historical and cultural links. If successful, this initiative may be extended to other parts of the world.

2. Stimulating competitiveness – by improving the diversity and quality of the tourism offer Commission activities support the diversification of tourism products with a focus on promoting Europe's common cultural and natural heritage.These include thematic trans-national cooperation projects on cultural and sustainable tourism, joint cooperation with the Council of Europe on Cultural routes and the European Destinations of Excellence Award (EDEN) to promote sustainable tourism development and raise the visibility of emerging European tourist destinations.

In April 2012, a mini-fair will be held in Pavia on religious tourism and pilgrimage routes. Other initiatives include: workforce skills and training – the Commission is considering creating a ‘hospitality’ sector under the European Job Mobility Portal (EURES), to facilitate workers’ mobility and the development of a ‘Tourism Skills and Competence Framework’; facilitating the participation of tourism SMEs in the digital supply chain via implementation of the ‘ICT tourism’ platform pilot project; and development of a European Tourism

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Quality Label as an umbrella scheme to increase consumer confidence.

Preparatory workshops and a stakeholder consultation have been held. An open conference is planned in January 2012.

3. Cross-cutting initiatives to support sustainable tourism development Commission activities include developing: Charter for sustainable and responsible tourism.

European system of indicators for sustainable destination management, based on research and best practice.

Virtual Tourism Observatory to consolidate the socio-economic knowledge base for tourism at European level.

4. Mainstreaming tourism in all Policy and Financial Instruments The Commission is ensuring that tourism industry interests are taken into account in other European policy areas and within the financial instruments of the Multiannual Financial Framework for 2014-2020 A Study on the impact of EU policies on tourism will be presented in the 2012 European Tourism Forum.

Further information about these activities including the latest Implementation Plan is available at http://ec.europa.eu/enterprise/sectors/tourism/index_en.htm The Commission is committed to the successful implementation of its tourism strategy and is working in cooperation with the Member States and industry representatives to support sustainable and competitive growth.

Julie Russell FTS | National Expert, European Commission, DG Enterprise and Industry

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London & Partners

London reaching for gold in 2012 The financial climate over the last few years has been particularly challenging for London and I have witnessed the capital’s tourism businesses work incredibly hard to overcome hurdles that have affected inbound visitors. From the economic downturn to volcanic ash clouds across Europe the industry has demonstrated its flexibility and resilience in order to maintain the upward trend in visitor numbers that we have been experiencing.

Credit: visitlondonimages/britainonview/Pawel Libera

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In 2010, we welcomed 14.6 million international and over 11 million domestic visitors, the highest numbers in four years.

So far, 2011 has bucked the UK trend with a 12.6% year-on-year increase for the first six months, and with hotel occupancy running a year to date average rate of 83% we are positive that 2011 will be another successful year for London.

But what does this mean for tourism over the next 12 months? As we count down to the world’s biggest event, the 2012 Olympic and Paralympic Games, tourism businesses across the capital are weighing up the opportunities to be gained from London’s host city status.

The events and hospitality industry has already been working hard to make the most out of the Olympic spotlight. With a number of National Olympic Committees (NOCs) planning to have a large presence in the capital during the Games, many of the capital’s venues and event spaces have already been booked for both private and public-facing events.The influx of NOC houses, particularly the public ones, is great news for the capital, allowing both Londoners and visitors the

opportunity to celebrate cultures from around the world as over 200 different nationalities compete in the Games.

While the capital may be busy welcoming the Olympic family for the Games in 2012, there is potentially a very different picture for leisure tourism. Many people in the industry will be aware of the phenomenon of displacement which may impact inbound visitors over Games time.

The ‘displacement’ effect is caused by potential visitors perceiving that the city will be closed for business, overcrowded and overpriced – perceptions which are important to address as soon as possible.

At London & Partners, we have been aware of the issue for a number of years and by working with the industry to

‘ ‘But what does this mean for tourism over the next 12 months? As we count down to the world’s biggest event, the 2012 Olympic and Paralympic Games, tourism businesses across the capital are weighing up the opportunities to be gained from London’s host city status’

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share our knowledge we want to become the first city to address this issue head-on. After some detailed consumer research, we developed a campaign to address visitor concerns directly and aim to drive visitors to the capital from now until the start of the Games.

The campaign, Limited Edition London, is running across all of our key markets in the UK, Europe, the US and Australia to highlight the unique, one-off events happening in the capital and since its launch it has received a positive response from potential visitors. We have been working with a number of tourism partners in the capital to showcase their events from attractions to museums and galleries and hotels to restaurants. As the campaign continues, we are still looking for exciting content and welcome suggestions from tourism businesses for any ‘limited edition’ events taking place before June 2012. In addition to the consumer marketing campaign and to address visitor perceptions of overpricing directly, we have launched the London Visitor Charter in partnership with the Mayor of London.This voluntary

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Credit: visitlondonimages/ britainonview/ McCormick-McAdam

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charter is open to all tourism businesses including attractions, bars, restaurants and travel providers, and is a promise that prices will not be over inflated because of the city’s host status. I am encouraging as many organisations as possible to sign up so they can prove to their customers that they are not raising their prices because of the Games.

As the first city ever to launch such a charter we hope that visitors will see London as an attractive destination throughout the Games.

We are aware that many tourism businesses have concerns about how they will operate during Games time. London 2012 has prepared toolkits and tips for businesses to help them operate during the period of the Games.The Travel Advice for Business website provides the locations for events and commuter hotspots, recommendations for deliveries and travel suggestions for staff and customers.

We urge all tourism organisations to review the information so they can prepare for business as ‘unusual’ during the games and still offer a good service to their regular customers.

During Games time, there will be an incredible range of activities taking place across London. In addition to the ticketed sporting events, there are free sports that visitors can watch including the marathon, triathlon and road cycling.

There will also be free live sites where Londoners and visitors alike can come together to enjoy the Olympic events as well as live entertainment.

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‘2012 will be an incredible year for the capital.To reap the benefits we will need to continue to be innovative in our outreach to visitors by offering the best the city has to offer to maintain an increase in visitors over the year. ’ In London and around the UK, the Olympic movement will also be celebrating arts and culture through the Cultural Olympiad and in particular the London 2012 festival.The festival is taking place around the country and provides a fantastic opportunity for visitors to really experience what we have to offer from art to film and dance to theatre and everything in between.

2012 is not only an Olympic year, of course. After Royal wedding fever hit the capital in April 2011, London and the rest of the UK is gearing up to celebrate the Diamond Jubilee to mark 60 years of Queen Elizabeth’s reign.

With events, exhibitions and celebrations taking place both in London and across the country, we have another opportunity to show the world our hospitality and welcome them to join us in marking a very special and unique occasion.

With over a million spectators coming to view the Royal wedding, we believe the Diamond Jubilee celebrations will again be a huge draw for both domestic and international visitors.

Of course, 2012 will not only be a draw for visitors and sports fans, but the capital will also be in the spotlight from the

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world’s media.To harness the potential promotional opportunity from the world’s press, we are creating the London Media Centre.

Working with a range of partners to highlight both London and the rest of the UK, the media centre will showcase everything that we have to offer. It is our intention to work with the world’s media to promote London and the UK to help generate visits post-Games and through 2013.

2012 will be an incredible year for the capital.To reap the benefits we will need to continue to be innovative in our outreach to visitors by offering the best the city has to offer to maintain an increase in visitors over the year.

We currently predict that the capital could see visitor numbers grow by about 2-3% in 2012, with many of these visits happening post-Games with particular increase from our developing visitor markets mainly China, Brazil, Russia and India.

Our ambition is that by working together with the tourism industry we can all share the legacy benefits of the 2012 Olympics and Paralympics as we welcome visitors post-games, through 2013 and beyond.

Dame Judith Mayhew Jonas | Chair of London & Partners

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Legal

Proposed legislation to help boost Britain’s tourism 2012, according to the Government, is set to be the year to boost Britain’s Tourism and Leisure Industry.The Coalition intends to harness the Olympics and the Diamond Jubilee as tools for attracting overseas visitors and to increase the proportion of UK residents holidaying domestically.

The Government has joined forces with the private sector to create a fund of more than £100 million to promote the Country’s offering abroad.The goal is to help generate four million additional overseas visitors over the next four years, bringing in £2 billion worth of extra spend to the UK and help to create fifty thousand jobs. Only recently,Visit Britain has been given a further £27 million Government funding to attract visitors from overseas. It is expected that the overseas marketing campaign will bring in £489 million in extra spending by tourists across the industry.

On the Domestic front, George Osbourne has said it is the Government’s ambition to “increase the proportion of UK residents who holiday in the UK to match those who holiday abroad each year. For longer stays (four nights or more) this would mean 29% of travellers holidaying in Britain rather than just 20% today (creating 4.5 million extra domestic trips each year, £1.3bn more spend and twenty six thousand new jobs). If we can replicate this scale of improvement for shorter stays as well, we will create a further £750m of spend and eleven thousand new jobs.”

The plan has been set out, so what legal changes are going to be made by the Government to achieve this?

1.Times are changing One potential change is to move the UK's clocks forward for a three-year trial period. Conservative MP Rebecca Harris proposed bringing in British Summer Time +1 as a new ‘tourism strategy’ suggesting it would extend the season and boost the economy. David Cameron has said the change will only be implemented if it is agreed across the United Kingdom; however, there has been particular opposition in Scotland as it has been argued that agricultural workers in the far north would suffer during the dark mornings.

2. New national holidays The Government is to consult on whether to create new national holidays.

The plan is to move the first bank holiday in May to the October half term to lengthen the summer tourism season.

Suggestions have been made for a 'UK Day' or 'Trafalgar Day', but we shall have to wait and see.

3. Brown road signs Even the effectiveness of brown road signs is being reviewed.The current signs are used to direct visitors to tourist destinations and the Highways Agency are to be consulted to ensure that brown signs are informative to road users, whilst also helping tourist destinations.

‘The Government is to consult on whether to create new national holidays.The plan is to move the first bank holiday in May to the October half term to lengthen the summer tourism season. Suggestions have been made for a 'UK Day' or 'Trafalgar Day', but we shall have to wait and see’

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4. Cutting the red tape The Government launched a website challenging the public to help cut unnecessary regulations. After nearly 600 comments from the public and businesses as part of the ‘Red Tape Challenge’, plans have been announced to scrap or simplify more than sixty regulations associated with the leisure and tourism industry.

5. Food Labelling On 6 July 2011 the European Parliament approved a new Regulation on food information.The new rules are designed to protect consumers so that they are not misled by the appearance, description or pictures of food packaging.The labelling of the energy value and the quantities of nutrients are to become compulsory although certain alcoholic beverages are exempt. Other factors such as labelling the product’s country of origin are to become compulsory. A failure to label properly will be deemed to be misleading consumers.

The new requirements will apply three years after the adoption of the Regulation. However, in the case of nutrition labelling, the obligation will not apply until two years later.

6.This is a smoke free area The Government will revoke smoke free sign regulations, removing requirements about what the signs have to look like or where they are located. Good practice guidance will be implemented in its place.

It is important to note though that nosmoking signs would still be needed in premises that are required to be smoke free.

7. Energy Performance Certificates New measures will be implemented so that Energy Performance certificates will

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coupled with an increase to the maximum period of a single TEN from 96 to 168 hours.

A disadvantage for licensees is that TENs will be granted subject to conditions.

Objections may also be made by Environmental Health officers to any applications (including the police) so licensees will need to take extra caution about their noise pollution.

Environment

not be required where holiday lets are intended to be used for less than four months a year and where holiday makers do not have exclusive use of the property during the period of their booking.

8. Private Water Supplies The Drinking Water Inspectorate will audit local authority performance regarding charging for private water supplies.

They will specifically be investigating the availability of charging information.

9. Alcohol Measurements The National Measurement Office will look to scrap regulations to give greater freedom to businesses over the sizes of measures served on some alcoholic drinks.

Update on the laws affecting you and your business Police Reform and Social Responsibility Act The Police Reform and Social

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Responsibility Act contains changes to the licensing regime in England which could affect your business. Although it is law, no date has been confirmed when the provisions will take effect. It is expected to be next year, so you ought to be aware of the important elements.

The Act makes amendments across a broad range of licensing.

For instance: Premises will face larger fines and the likelihood of revocation if they are convicted of persistently selling alcohol to minors Early Morning Restriction Orders which prohibit the sale of alcohol late at night may now be introduced Premises permitted to trade after midnight may receive a late night levy.

Temporary Event Notices (“TENs”) have been significantly changed in accordance with the Act. Applications which presently take ten working days will be available on shorter notice. In addition, the number of days a TEN can be utilised at a single premise will increase from 15 to 21 days

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A new Responsibility Deal between Government and the waste industry has been announced to help businesses prevent and recycle more of the waste they produce to help them save money.The Deal aims to improve recycling services for small and medium sized businesses which, according to the Government, has the potential to save them up to £18 billion a year.

Bribery Act The Bribery Act 2010 came into force on 1 July 2011.The act modernises the crime of bribery and introduces laws which could make your company liable for failing to prevent bribery.

Businesses will understandably be concerned about hospitality and whether this could be categorised as bribery.

The Government is aware that hospitality or similar business expenditure can be used as bribes; however, the Act is not designed to prohibit hospitality.

The core principle of the Act is that hospitality must be proportionate.

In the future Linder Myers will be giving a presentation on the Bribery Act and how it could affect your business, so keep a look out.

Stuart Sutton MTS | Partner and Head of the Regulatory and Compliance Department, Linder Myers LLP

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Global Travel & Tourism in 2012 Resilience amidst revolution and recession Despite unprecedented economic and political challenges,Travel & Tourism has continued to grow in most regions of the world throughout 2011. And while we do not yet know what 2012 may have in store, we do know that the industry is resilient – WTTC’s latest 2011 estimates point to a 3% growth in global GDP contribution and, according to the World Tourism Organization, international arrivals will be up by more than 4%.

Current growth forecasts for 2012 are also positive – between 3% and 4% in both GDP contribution and international arrivals.

This growth will increasingly be driven by China, India and other emerging economies as their populations become richer.Travel & Tourism GDP in China is set to grow by 8.7% in 2012, with 6% and 7% growth in India and South East Asia respectively, boosted by massive investments in infrastructure. China alone will see 12 new runways come on stream in 2012.

2012 is election year in the USA and with high unemployment rates and slow GDP growth expected to persist,Travel & Tourism will do well to hold up to the forecast 1% growth in GDP contribution.

Japan is recovering well with GDP growth returning at 1.5% in Q3 2011. As the third largest Travel & Tourism economy, the positive impact of a Japanese population which is travelling cannot be underestimated – as destinations such as Hawaii,Thailand and the Philippines well know. However, while outbound and domestic travel appears to be back on track, inbound still has some way to go.

The picture is not as rosy for the eurozone with some analysts now predicting a return to recession in early 2012.This means that destinations which rely on these markets will struggle as European consumers travel and spend less.The region’s 1.6% growth in Travel & Tourism GDP forecast for 2012 is likely to be driven by consumers holidaying closer to home, the prospect of a weak euro lowering prices, and as the south of the region continues to benefit from displacement caused by the events in North

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David Scowsill | President & CEO, World Travel & Tourism Council (WTTC)

Africa and Middle East. However, the inclusion of aviation in the EU-Emissions Trading Scheme will undoubtedly put pressure on the European airlines, and may well see the region struggle to maintain competitiveness.

The ‘Arab Spring’ uprisings have inevitably resulted in poor tourism performance in the Middle East and North Africa in 2011, although arrivals to some destinations such as Morocco and the UAE have held up well. Initial growth forecasts for 2012 are positive – 7.2% for the Middle East and 5.5% for North Africa, largely recapturing losses experienced in 2011.

But security remains a concern, at least until stable governments are in place.

However, the interim administrations in both Egypt and Tunisia have rightly prioritised tourism, and arrivals are expected to return to pre-revolution levels sometime during 2012, assuming no further unrest.This will benefit neighbouring countries, particularly Jordan, as visitors increase and perceptions improve.The

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situation in Syria is still a worry and, although not a high profile destination, the country accounts for around 20% of arrivals in the Middle East so continued unrest there will impact the region.

South America could be the star performer in 2012, the forecast 6% growth in Travel & Tourism GDP being driven by strong domestic and regional markets, and increasing government recognition of the industry’s economic importance.

So we at WTTC enter 2012 with a sense of cautious optimism.Travel & Tourism is a multi-faceted industry which is crucial to economies – generating 9% of world GDP and 1 in 12 jobs. Despite the undoubted challenges ahead, our industry’s resilience and dynamism will mean it continues to grow, supporting more livelihoods around the world. Governments can ensure they reap maximum benefit from Travel & Tourism by providing a policy framework conducive to growth – such as by streamlining visa processes and removing unfair, harmful taxes.

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Aviation

Let’s not fly in the face of reality Travel and tourism have made huge contributions to increasing social mobility.

Fifty years ago only the very wealthy had the opportunity to fly.Today, 90% of Britons have flown and more than half the population do so every year.

Passenger surveys show that leisure trips by those from the three lowest socioeconomic groups rose from 5.8 million passengers in 1996 to 8.7 million in 2009.

Flying is no longer exclusive; it now allows millions of people to enjoy travel overseas.

The UK has the sixth largest tourism industry in the world – we punch well above our weight. As you’d expect with an island nation, most arrive by air. In 2008, visitors to the UK arriving this way contributed 86% of the £16.3 billion spent by all overseas visitors.

The Government has made growing tourism a priority for this Parliament and, as we have seen with the Chancellor’s Growth Strategy, investment in infrastructure is rightly seen as key to driving economic growth and helping to get the economy back on track.

So what lies in store for the crucial aviation sector over the next 12 months?

Unfortunately it’s a bleak picture, despite the positive rhetoric. In a recent speech Deputy PM, Nick Clegg, highlighted transport projects and said the Coalition intends to “handpick 40 of the biggest infrastructure projects – the ones most important to growth”, and give these projects “special priority status”.

But the delivery of new runway capacity is not to be part of that mix, despite its proven ability to drive growth and an Institute of Directors survey which found that 90% of its members said investment in aviation infrastructure is more important than high-speed rail.

As with the UK’s roads, Heathrow,

Britain’s only hub airport, is the most congested in Europe. Its two runways operate at 98% capacity, compared with our continental competitors (Paris, Amsterdam, and Frankfurt) who all have 4 runways or more and operate at 75% capacity or below.

Frustratingly the Coalition Government – having ruled out new runways at Heathrow, Gatwick and Stansted over 18 months ago – has only recently embarked on a lengthy review of UK aviation policy, the results of which will not be published until 2013.

But, with Heathrow full, hub capacity in the UK must grow. We need a serious debate now on where, and when.

Why? Put simply, a hub airport’s unique long-haul routes deliver higher economic benefits from tourism and trade than those from other UK airports, meaning that its existence is critical to UK growth.

Growth means increased trade, investment and jobs.

But the greatest short-term threat to

‘The UK has the sixth largest tourism industry in the world – we punch well above our weight. As you’d expect with an island nation, most arrive by air. In 2008, visitors to the UK arriving this way contributed 86% of the £16.3 billion spent by all overseas visitors’

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UK tourism remains the effect of rises in Air Passenger Duty. Especially at a time when countries such as Ireland, Belgium, Holland and Denmark have actually scrapped aviation taxes altogether.

This tax’s ‘tipping point’ has been reached and reduced overall tax receipts are now likely to result if the planned double-inflationary increase is introduced in 2012.

The UK already underperforms in relation to other EU countries for numbers of Indian and Chinese tourists. If the planned increase goes ahead, this gap will get even bigger.

However, it’s not all doom and gloom.

2012 will be an exciting year for the aviation sector – the £1 billion Terminal 2 at Heathrow will near completion and London will host the Olympic and Paralympic Games with about 80% of the Olympic family due to travel through Heathrow alone.

But, if the UK is serious about promoting tourism and growth, then it must provide a level playing field with our European competitors, both in terms of taxation and infrastructure, and allow sufficient aviation capacity for people to travel internationally. China will have built 97 new airports in the decade to 2020. Such destinations can only be served by a viable hub airport in the UK – that’s why we need Government policies that support aviation now.

Nigel Milton | Director of Policy & Political Relations, BAA Ltd

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Case Study

Malaysia: Responsible Tourism Tourism Malaysia’s tagline is ‘Malaysia Truly Asia’, highlighting the opportunity to experience all aspects of the Asian continent in one destination. Malaysia boasts three combined cultures – Malay, Indian and Chinese – and this melting pot of multiculturalism makes Malaysia a fascinating destination to visit, not just for the cultural and resulting gastronomic delights but also because Malaysia offers such a diverse environment. Activities for the modern tourist to enjoy range from browsing the business and shopping districts in cities such as the capital Kuala Lumpur, relaxing on the luxurious islands and beaches, and exploring the tropical rainforests and the many national parks.

Malaysia is enjoying a period of growth in visitor arrivals, from 5.5m in 1998 to 24.6m in 2010. UK visitors to Malaysia are also growing in number with 34,012 visiting in the month of January 2011 compared to 32,739 in January 2010.

Malaysia is one of the world’s twelve mega-biologically diverse countries, boasting at least 15,000 species of flowering plants, 286 species of mammals, 150,000 species of invertebrates and 4,000 species of fishes in addition to the countless micro-organisms. Our rainforests are millions of years old and home to an incredibly diverse array of flora and fauna.

The growth in visitors to Malaysia includes an increasing number of ‘responsible’ and ‘eco’ travellers, who come to experience a range of activities in which they may fully appreciate the ecotourism experience such as caving, hiking, jungle trekking, white water rafting, rock climbing, bird watching, diving and river cruising.

While promoting the natural attractions of the country to tourists, the Malaysian Government also realises the importance of sustainable tourism and of balancing conservation and development. As such, the Ministry of Tourism, Malaysia, has adopted the National Ecotourism Plan (NEP) to provide policies and guidelines for the conscientious development of ecotourism.

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Dato’ Sri Dr. Ng.Yen Yen | Minister of Tourism, Malaysia and Abdul Rauf Abu Hassan MTS | Director UK & Ireland, Malaysia Tourism Promotion Board

One of the most popular responsible tourism campaigns in Malaysia is the conservation holidays to Malaysian Borneo to help save the endangered orang utan. We are working with The Great Projects Ltd, a responsible tourism company in the UK and the number one company sending volunteers abroad to experience the conservation of orang utans.

Latest estimates from studies in 2008 show that there are fewer than 7,000 orang utans left in the wild.This represents a staggering decrease from the already scarce 12,000 in 1994, their rapid decline in numbers due to the clearing of their natural habitats from human development, mining, and illegal poaching.

While most of Malaysia’s orang utan rehabilitation efforts are focused in east Malaysia, such as the Sepilok Orang Utan Rehabilitation Centre in Sabah, other initiatives are also forming in Peninsular Malaysia toward this goal. One fundamental hub that contributes to these efforts is the Orang Utan Island located in Semanggol, Perak.

‘Voluntourism’ is no longer the sole territory of the gap year student but has been extended to those taking career

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breaks in later life, retirees looking for a more adventurous break, even families wanting to educate their children during their holiday.The whole concept has become more appealing to tourists of all different ages, all of whom are welcome in beautiful Malaysia.

Malaysia's reputation as one of the best ecotourism destinations in the world is further strengthened by the inclusion of the Mulu National Park in Sarawak and Kinabalu Park in Sabah in UNESCO's World Heritage Sites List. Langkawi Island which is located in the northern part of Peninsular Malaysia has also been recognised by UNESCO as a geopark, a title given to outstanding geological landscapes in the world.

The Ministry of Tourism welcome the opportunity to share their experience of developing sustainable tourism successfully with other countries in the world and members of the Tourism Society in order to preserve our precious world for future generations to enjoy.

For more information visit www.tourism.gov.my

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Consultants’ Outlook

Business Tourism – Rebirth of the meetings industry?

In the last three years, MICE activity has imploded and it is only in late 2011 that optimism is emerging.This may be due to the 2012 Olympic Games and other sporting events (as I write this in November 2011, London was announced as host of the 2017 World Athletics Championships) but this optimism is tempered by the recent financial upheavals in Europe and continuing unrest about the state of the UK economy.

Prospects are complex. Should subvention be used to stimulate more international events? Is technology overtaking the need for face-to-face meetings? Do venues have excess capacity? Is the service provided inconsistent? Are achieved rates under pressure? Are late booking patterns increasing, and is there a reduction in delegate numbers?

Our advice to clients is that these trends will continue and consultants in the MICE sector are tackling these issues through inventiveness and resolve.

So what of the future?

Planners should be looking at the needs, motivations and importantly contributions from delegates. Marketing consultants involved in the meetings business need to concentrate on brains rather than beauty because physical attributes of meetings are similar the world over. It is the experience, learning and meeting with peers that is more important to the attendee.

Denmark is setting the tone with its ‘Meetovation’, campaign, which bans boring meetings and instead includes five key elements: A high level of delegate participation Flexibility of the agenda Environmental responsibilities Evaluation – Return on meetings Investment (‘ROMI’) Relocation – making creative use of the physical setting and facilities.

So, the future may not be bigger and better, but richer, integrated and more immersive.

A large number of delegates have ‘Permanent Partial Attention’ – physical presence but only partial attention to proceedings which means organisers

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Credit Adriano Castelli / Shutterstock.com

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Now I’ve got your attention..? need to prepare for this in advance.

Smart Phones can engage as well as distract – why not ask delegates to set to silent but give comments via social media.

Technology develops quickly so who knows what will be next? Video conferencing has replaced many face-to-face meetings, with significant cost savings.

Remote 3D presentations are a reality with hologram technology for presentations by speakers in far-flung locations and settings. Whilst technology can never replace the importance of face-to-face, it does allow people to engage in new ways, enhancing connections. Google has recommended the travel industry should ‘get appy’ as a 1,200% increase in mobile search has driven a 15% increase in bookings via mobile devices in 2011.

Gaming apps can present another opportunity to make meetings more interesting.

Age considerations.There always has been and always will be a generation gap and the communication used should match the audience.The hierarchal approach is rarely effective, and it is important to avoid the use of jargon or ‘management speak’ and to use plain English as there is little point in trying to

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‘ape’ the younger person’s language if most of the audience has grey hair or is balding (like me!).

Cooperation is important. Competitors are around the world not down the road and destinations and venues need to work more closely. Most of my business tourism consultancy colleagues are focusing on bringing together seemingly competing businesses to work together to share business opportunities so that if one location cannot offer availability or price it is better to provide an alternative nearby.The original choice may win supplementary business and by helping a fellow operator it will impact on the local economy rather than lose the business for good.

Longer term, we are in for an extended period of economic austerity and in future ‘Price Parity’ will be replaced by ‘Price Purity’ as customers seek best value, the most interesting options and that their event will provide experiences that delegates will always remember whatever their generation now.

It is also important to put meetings into perspective – I doubt anyone’s dying wish is that they had attended more meetings!

John Gallery FTS | Director, Great Potential Business Tourism Specialists

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Prospects for destinations Cath Hindle MTS

Hayley Beer MTS

Paula Harbidge MTS

Contrasting destinations share optimism despite challenges NewcastleGateshead As with many other destinations, NewcastleGateshead’s prospects and those of its DMO (NewcastleGateshead Initiative) can be defined by a series of challenges in 2012 that we are determined to transform into some great opportunities.

As always, resources remain a priority (who doesn’t want to do more?) both from our public and private sector partners. We miss the support of One North East, who understood the need for core funding to support campaigns and development activity.To maintain and grow our resources, we will broaden our horizons in 2012 by adapting the organisation to deliver a wider package of services around business winning and the development of the wider (not just tourism) place brand. Inward investors are just a different type of visitor, right? Talking of which, on behalf of Gateshead and Newcastle City Councils, we will also be taking on responsibility for visitor information, providing a single approach to delivery so that visitors can access infor-

mation where and when they need it most.

To TBID or not to TBID – that is the question. We will explore the opportunities that this development brings alongside the other core cities but how can we make this work against our existing partnership scheme and other income streams? The private sector will not want to pay twice and nor should they. Just thinking about the maths involved to determine our approach makes me want to reach for my calculator.

I tried hard not to mention the “O” word but why shouldn’t we?

Whilst the detractors speculate about a drop in visitor numbers during Olympic year, the Games will be informing many of our activities as Newcastle’s St James’ Park hosts football, providing a great opportunity for us to achieve greater profile, improve external perceptions and deliver an economic boost.Therefore, campaigns and cultural events programming throughout 2012 will seek to max-

imise this ‘once in a generation’ opportunity that provides a great platform to encourage VFR and increase local pride.

In summary, I think I need a lie down!

Cath Hindle MTS | Head of Development, NewcastleGateshead Initiative The Oxfordshire Cotswolds Always one to take a glass half full approach, I am optimistic as to what 2012 will bring the local tourism sector here in the Oxfordshire Cotswolds. Not only is the Olympic Torch coming through Woodstock and Blenheim Palace on July 9th, which is a great opportunity to raise the profile of the area, but we already have a year-round events programme running which continues to attract more visitors to the area and we expect this to help us in our ambition of getting visitors to stay longer. We are seeing a real growth in the weekend-long events which in turn fits in with our strategy of longer stays and higher visitor spending.

©Oxfordshire Cotswolds

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However, I am sure that the year will not be without its challenges. As a destination we sit right on the border not just of two

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counties but also of two regions and indeed DMOs. We need to make sure that we maintain our position as a mustsee visitor destination and remain engaged strategically at a national level and do not fall off the radar.

Through effective communication and partnership working I am convinced that this is possible, albeit a challenge at times!

On the back of a recent trade mission to the USA it was clear that tour operators

are starting to see a shift in their clients’ needs, with of course a natural need and desire to visit London, but coupled with a desire to base themselves in a more rural and quintessentially English location – what better place than Rural England at its Finest here in the Oxfordshire Cotswolds!

We intend to capitalise on this.

We will remain focused on our own Tourism Strategy and link in regionally and nationally to enhance this. But value

‘On the back of a recent trade mission to the USA it was clear that tour operators are starting to see a shift in their clients’ needs, with of course a natural need and desire to visit London, but coupled with a desire to base themselves in a more rural and quintessentially English location’ Margate, Broadstairs & Ramsgate We look towards 2012 with optimism on the back of the huge success this year of the new Turner Contemporary Gallery in Margate, which attracted 300,000 visits in the seven months since opening in April.

Indications are that accommodation providers in Broadstairs and Ramsgate have also benefited from the Gallery’s presence and an exciting series of exhibitions is already in place for 2012.The signs are that Turner is having a real culture-led regenerative impact.There is more interest from businesses looking to develop new visitor accommodation and the aim next year will be convert the interest into results.

Broadstairs – and particularly the Dickens House Museum and Dickens Festival there – is expected to benefit next year from the celebrations of the bicentenary of the birth of Charles Dickens. Ramsgate – also celebrating Pugin’s bicentenary next year – is already a popular destination for visiting yachtsmen and we expect that interest to increase in view of the London 2012 Olympics sailing competition taking place along the coast at Weymouth.

There are, however, a number of challenges to face. Like all local authorities the reduction in funding has led to cuts to services such as cleaning, foreshore management and events – all of which are important to the overall visitor experience. Like all destinations we look to the private sector to make a contribution towards our destination marketing work, but it is difficult enough to maintain such valuable support let alone increase it.

One way to ensure best use of resources is through working in partnership. We work closely with Visit Kent and will continue to partner them in marketing campaigns that allow our resources to go a lot further.These include an outdoor

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advertising campaign in London, the launch of a Lonely Planet Guide to the Kent Coast and a new watersports website.

Oh, and the London 2012 Olympic Torch Relay passes through on July 19th!

over volume, marketing and sustainability remain key to our achieving this and will continue to be our focus for 2012.

Under very testing external circumstances we have continued to increase the value of tourism to the local economy over the past few years and are positive that this can continue.

Given the announcement of increased funding from the national tourist boards recently, whether directly involved or not this can only be good news for the entire sector and we remain optimistic for the coming year.

Hayley Beer MTS | Tourism Services Manager, West Oxfordshire District Council

Paula Harbidge MTS | Senior Tourism Officer, Thanet District Council

‘One way to ensure best use of resources is through working in partnership. We work closely with Visit Kent and will continue to partner them in marketing campaigns that allow our resources to go a lot further.These include an outdoor advertising campaign in London, the launch of a Lonely Planet Guide to the Kent Coast and a new watersports website.’

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Hospitality

The VAT cash-cow Next year looks like offering a bumper crop of business for the accommodation industry in London, while at the same time being a good little extra earner in terms of tax generated. Prices and conditions are driven by greed, as they almost always are whenever demand peaks so dramatically. Sometimes we lose sight of the fact that this industry is an export and, as such, we should all be in favour of the highest rates and highest occupancy wherever they can be achieved.The extra revenue generated should help to sustain the sector into the future.

Once the Olympic dust settles, the exchequer tills up and London businesses bank their cash, what of the health and competitiveness of the wider accommodation sector? Every day I speak to many small businesses struggling to provide the unique charm and individual experience that makes an overnight stay something special. Being small, independent and rurally located, these properties rarely get a voice, yet they contribute significantly to their local economy and enhance our national tourism offering. For many of these businesses, the high level of VAT could tip them into the red. Some talk of under-trading to avoid the threshold, whilst others live on the verge of profitability.

With the Government as strapped for cash as anybody, no-one expects any favours.That said, the benefits of encouraging export must be blindingly obvious. If we can get more folk from abroad to spend time and money here while also making it more attractive for the natives to stay local, it must surely benefit the tax system. Accommodation is in an ideal and rare position to help the economy in five ways: boost exports, grow domestic demand, generate jobs, increase GDP and support small rural business. Wow! You would think any Government would see these advantages, and, in fact, many overseas Governments have.

Looking at what the competition has to offer is great business practice.There is nothing more satisfying than pinching a good idea and making it even better.

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Craig Stewart MTS | Director, freetobook

World Rank* 1 Switzerland 2 Germany 3 France 4 Austria 5 Sweden 7 UK 8 Spain 11 Iceland 14 Netherlands 15 Luxembourg

Accommodation VAT rate 3.80% 7.00% 5.50% 10.00% 12.00% 20.00% 8.00% 7.00% 6.00% 3.00%

Likewise, Governments need to look at their competitor countries to discover a few great ideas. Every other year the World Economic Forum produces a very useful report and competitive ranking.

How does the UK Government figure against its competitors? If you take the discounted level of VAT charged on accommodation as an indication of the ‘support’ given to the industry, then the UK performs very badly against its top ten European competitors.

The results are quite literally shocking.

Every single competitor enjoys a tax advantage against the UK. In relative terms, the UK Government is effectively taxing exports (domestic accommodation) and allowing tax breaks for imports (European accommodation).You might be tempted to forgive them if this related to a couple of countries, but every single one, bar the UK, has a tax break.The world of international trade is heavily reg-

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Standard VAT rate 8.00% 19.00% 19.60% 20.00% 25.00% 20.00% 18.00% 25.00% 19.00% 15.00%

ulated. It is very rare to have a sector where a Government has the power legitimately to favour its local businesses.

This is one of them, and it seems to me that every other Government knows it.

Perhaps the Government is waiting until the Olympics are over. Just like the greedy London hoteliers, they see no reason to reduce tax-take in a bumper year.

As a quid pro quo to the rest of the country they should look to reduce the VAT rate as soon as they can, or the UK will almost certainly have many fewer small independent properties. In the years to come we will need to visit France, Germany or Ireland to find them. * Source – The Travel and Tourism Competitiveness Report 2011 by the World Economic Forum

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Membership News Despite tough times over the last year it is heartening to see a healthy list of new Society members on the following page.

It is perhaps more important than ever to develop and maintain links with organisations such as ours during difficult and uncertain periods, to keep connected to the industry and up to date with what is happening. Welcome to all our new members, and particularly to our new Corporate Member, Best of Britain and

Ireland, and our new Corporate Partner, Linder Myers LLP.They are offering some excellent benefits to members – please log in to the website and have a look at the Discounts section for details.

2012 will be the UK’s year for tourism – so we are told. Our Prospects event in London on January 25th will field an experienced panel to discuss what the year holds in store in their sectors.

Whatever their conclusions, this year will

certainly be an exciting one. Contact the office or go online to book your ticket.

The Society has moved into new offices in central London, and we are looking forward to the increased opportunities this will bring to be more closely involved in the industry’s activities.

Gregory Yeoman MTS | Executive Director gregory@tourismsociety.org

From the Chairwoman’s Desk I hope you all get as excited as I do whenever I receive a copy of the Tourism Society journal. I find every issue filled to the brim with informative and interesting articles and this issue follows the trend again with thought provoking articles from Tourism and Travel Industry leaders giving their insight to trends and topics impacting our sector. I cannot hold one article in this issue as standing out above the others as I find the “whole picture” interesting and always of relevance when I am talking to people within our industries in varied settings.The Tourism Society does not concentrate on one area or sector within the world of Travel and Tourism – our

interest is holistic, as it should be. We are all in this together and like the domino effect, in most cases, when one area feels the pinch the whole body winces, and of course the opposite is true as well.

I truly hope you enjoy this issue and even share the articles out to colleagues and friends who have interest in these topics, and most of all, I hope that 2012 finds you health and prosperity. We all have so much to look forward to.

Wishing you all the best, Aviva Pearson FTS | Chairwoman, The Tourism Society

Obituary

We’re on the move ...

The Tourism Society has moved offices: New contact details are: Queens House, 55-56 Lincoln’s Inn Fields, London WC2A 3BH T 0207 269 9693 F 0207 404 2465 E admin@tourismsociety.org W www.tourismsociety.org

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Dave Hughes MTS FTMI It was with great sadness that we learned of the death of Dave Hughes in December. Dave was a very well-respected member of the tourism industry whose reputation had been built up over thirty years, working with a number of local authorities and since 2011 with his own consultancy,Tourism Plus. In 2003 he was awarded the Silver Medal for services to tourism by the French Government.

Dave was Vice-Chairman of the Tourism Society and President of TMI. He worked hard to make sure the integration of the two organisations went ahead as smoothly as possible, and his contributions to discussions around the board table will be greatly missed.

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Membership News Congratulations to the following who have been upgraded to Fellow of the Tourism Society (FTS): Gary Verity, Peter Colling, Philip Riddle OBE, Richard Denman, Sean Taggart and Tony Barnfield Welcome New Corporate Partners Linder Myers LLP 0844 984 6444 www.lindermyers.co.uk Stuart Sutton stuart.sutton@lindermyers.co.uk Alan Lewis alan.lewis@lindermyers.co.uk Anthony Robinson anthony.robinson@lindermyers.co. uk Paul Allerston paul.allerston@lindermyers.co.uk Welcome New Corporate Members Best of Britain and Ireland 01926 888 123 www.britainandirelandevent.co.uk Helen Conway MTS helen@expom.co.uk Mark Griffin MTS mark.griffin@expom.co.uk

www.michaelgrobinson.com Roz Mitchell MTS Salisbury Cathedral 01722 555 118 r.mitchell@salcath.co.uk www.salisburycathedral.org.uk Gayathri Kanagasapathy MTS Tourism Malaysia 07703 728 579 gayathri@tourism.gov.my www.tourism.gov.my David Howells MTS Rubicon Regeneration Ltd 01273 726 342 david@rubiconregen.com www.rubiconregen.com Amanda Cottrell MTS Visit Kent 01227 812 900 alison.hughes@visitkent.co.uk www.visitkent.co.uk Alexandra Marr MTS Alexandra Marr & Associates 07815 737 130 amarr@alexandramarr.com

Sam Warnock MTS sam.warnock@expom.co.uk

Chris Philpot MTS Barleylands Farm 01268 290 229 chris@barleylands.co.uk www.barleylands.co.uk

Donna Abberley MTS South African Tourism 0208 971 9354 donna@southafrica.net www.southafrica.net

Karen Plumb MTS TripAdvisor 0203 320 3296 kplumb@tripadvisor.com www.tripadvisor.com

Katy Hack MTS The National Trust 01793 817 400 katy.hack@nationaltrust.org.uk www.nationaltrust.org.uk

Karla Schollianos MTS Vision One Hospitality Consultants LLC +1 407 997 1200 kschollianos@visiononehc.com www.visiononehc.com

Lenka Ilovicna MTS lenka@expom.co.uk

Catherine Weaver MTS The National Trust 01793 817 400 catherine.weaver@nationaltrust.org .uk www.nationaltrust.org.uk Welcome New Members Philip Evans CBE MTS The Vox Group plc 01834 871 100 philip@voxgroup.co.uk Petia Petrova MTS University of Bedfordshire 01582 489 302 petia.petrova@beds.ac.uk Laurence Logan MTS Malaysia Tourism Promotion Board 0207 930 7932 logan@tourism.gov.my www.tourism.gov.my Michael Robinson MTS Guides of London 01444 235 746 michaelgrobinson@mac.com

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Welcome New Students Gerrit Thomas University of Surrey gerrit.thomas@gmail.com Catherine Wishart Dollar Academy catherine_wishart@hotmail.com Klaudia Merten University of Westminster klaudiaa_88@wp.pl Azizul Hassan University of Greenwich ma.hassan@ymail.com Giulia Zuzic University College London giuliazuzic@gmail.com Tereza Kohutova University College Birmingham tkohutova@hotmail.com Sophie Hanick University College Birmingham sjmhanick@yahoo.con

spalmer.119836@students.smu.ac.uk Emma Meek Swansea Metropolitan University emmameek@live.co.uk Emil Petrov London South Bank University emilpetrov_bg@hotmail.com Lizzy Makore Swansea Metropolitan University elshadaizw@yahoo.com Ben Walker University of Surrey benwalker73@hotmail.com Tonika Ivanova Leeds Metropolitan University tonika.iliychova@gmail.com Jette Sell Oxford Brookes University bob_sell@hotmail.de Tessa Riess Oxford Brookes University 11002567@brookes.ac.uk

Samantha Palmer Swansea Metropolitan University

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Joanna Matloka MTS 77 Agency 07850 369 920 j.matloka@77agency.com Penny Wilkinson MTS National Forest Company 01283 551 211 pwilkinson@nationalforest.org www.visitnationalforest.co.uk Feolla Chastanet MTS Coco Resorts +1 758 456 2800 fchastanet@coco-resorts.com David Andrews MTS VisitWiltshire 01722 341 941 davidandrews@visitwiltshire.co.uk www.visitwiltshire.co.uk Tariboba Memberr MTS Now Travel and Tours Ltd +234 806 382 2152 nowtravels@yahoo.com

Issue 148 Winter 2011

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