Up to half of the staff in the British Government department responsible for tourism ? the Department for Culture, Media and Sport ? are to be made redundant under a program of stringent cuts submitted to the UK Treasury. The department is likely to be among the hardest hit by cuts of up to 40% demanded by the Treasury. Britain is facing an emergency budget as the country?s new government strives to cut back a ballooning deficit of about GBP230 billion (about AUD396 billion), which it lays firmly at the feet of the previous Labour administration. The UK?s colossal annual welfare bill of GBP192 billion (about AUD331 billion) is of major concern and will be cut by about GBP11 billion (about AUD19 billion) a year. Tourism administration may be a collateral casualty.
The World Travel and Tourism Council (WTTC), whose members come from many of the biggest tourism organisations and have significant interests in the UK, has reacted with dismay to the proposed cuts in Department for Culture, Media and Sport staffing. The WTTC protests that the cuts could stagnate growth in tourism.
Yet again this coalition government has shown incredible short-sightedness and bad judgement, Jean-Claude Baumgarten, president and chief executive of WTTC, accused.
The travel and tourism economy is worth GBP140 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 GBP850 billion and still struggles in its lengthy recovery, the government appears to be actively working to stagnate growth in travel and tourism.
The WTTC points to the UK government?s pledge to prevent expansion at Heathrow Airport, London?s biggest aviation hub ? despite the threat of increasing competition to the title from other European airports. It also cites 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 and tourism industry which supports 3.1 million jobs and attracts GBP24.3 billion in visitor exports in the UK, the WTTC contends.
If it continues down this path, the UK will quickly lose its competitive advantage and find itself fall from the top 10 league of international destinations, Baumgarten said.
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.?
The WTTC plans to meet with British Prime Minister David Cameron to raise his understanding of the potential of the travel and tourism industry ? and the challenges it faces ? and get his government?s support.
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