Earlier this year the UK Government established the Migration Advisory Committee (MAC), chaired by Alan Manning. The Committee has been asked to conduct an analysis about EEA migration across the whole of the UK which is expected to inform the future UK Government approach to migration.
The MAC published a call for evidence on 4 August which closed on 27 October. However, the Committee is taking evidence after this date and as part of the Migration Advisory Committee’s work on the value of EU nationals to UK businesses and what needs to be done to ensure that there are is not a shortage of employees when the UK leaves the EU, a round-table discussion was held in Cardiff on the 21st November. The WTA was represented by Adrian Greason-Walker who was able to raise awareness to the members of our sector. Adrian expressed his concern for the tourism industry and the loss of labour that may result as a direct result of BREXIT. The MAC will in due course produce a series of recommendations which will be passed back to the UK Government.
0 Comments
A 'Research Briefing Note' has been published on the UK parliament.gov website. This note gives a short introduction to the way VAT works, and the significance of EU VAT law for setting VAT rates, before discussing the campaign for a lower VAT rate on tourist services.
However it states 'the current Government has said that it would consider the impact of VAT, and the impact of air passenger duty (APD), on tourism in Northern Ireland. In the Autumn Budget on 22 November the Government confirmed that it would “publish a call for evidence which will consider the impact of VAT and APD on tourism in Northern Ireland” early in 2018 “to report at Budget 2018.” http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06812 We are going to be monitoring this development closely and will make any representations needed at the right time. Welsh Government has announced the next round of tourism funding and published details on the plans for ‘2018 Year of the Sea’ and ‘The Wales Way’.
Tourism Funding The Regional Tourism Engagement Fund 2018/19 (RTEF) and the Tourism Product Innovation Fund 2018/19 (TPIF) aim to help the private and public sector work together to develop and deliver tourism products linked to Year of the Sea 2018, Year of the Discovery 2019, and The Wales Way. Expressions of interest are invited by 24 November 2017. The Regional Tourism Engagement Managers in the respective Welsh region can provide further information on the funding opportunities: North Wales: Andrew Forfar, AndrewWallace.Forfar@gov.wales Mid Wales: Helen Jones, Helen.Jones28@gov.wales South West Wales: Jane Donald, Jane.Donald@gov.wales South East Wales: Louisa Giles, Louisa.Giles@gov.wales 2018 Year of the Sea The thematic years will continue with the ‘Year of the Sea’ taking place throughout 2018, and aims to promote Wales as a world-class coastal destination putting coastal communities, lakeside and riverside shores at the forefront of marketing campaigns. Further details on how members can participate can be found here. The Wales Way The Wales Way is a new initiative which will encourage ‘independent explorer’ visitors to explore the product and areas around three main routes:
The Wales Way marketing campaign aims to provide a focal point for international marketing with authentic and distinctive experiences at their core. A flyer giving further details about the project is attached and for further information please contact Lucy von Weber or Gwawr Price, email: gwawr.price3@gov.wales or tel: 0300 062 2550. A proposed tourism tax which is being considered by the Welsh Government received an emphatic thumbs down at the Mid Wales Tourism and Business Conference.
The conference, organised by independent tourism organisation MWT Cymru and sponsored by NFU Mutual, Aberystwyth at The Metropol Hotel, Llandrindod Wells, included an ‘Ask the experts’ question time. The panel of experts comprised Adrian Barsby, Wales Tourism Alliance chairman, Rob Holt, Visit Wales’ deputy director of tourism development and major events, Suzy Davies, AM, chairman of the Wales Cross-Parliamentary Tourism Group and John Mercer, NFU Cymru director. The Welsh Government is currently considering which of four new tax raising power proposals to select. The tourism industry across Wales is united in its opposition to a tourism tax proposal, warning the government that it risks making the industry uncompetitive against England. There is also concern that the tax would add an extra burden to the industry when it is already paying more in business rates and meeting the minimum wage law. There is also an argument that businesses don’t need further uncertainty on top of the Brexit negotiations. Rowland Rees-Evans, MWT Cymru chairman, confessed to being fearful about the prospect of a tourism tax and asked for the panel’s opinion on the proposal. Mr Holt noted that many countries and cities had some form of tourism tax, but he fully understood the strength of feeling within the sector against the proposal, not least in the context of current VAT rates. Mrs Davies argued that VAT was a form of tourism tax and she urged the Welsh Government to drop the proposal as soon as possible to stop uncertainty in the industry. Mr Barsby said the tax would make the Welsh tourism industry uncompetitive and said it would be an unfair levy on accommodation providers. John Mercer, NFU Cymru director, said the proposal was causing concern amongst farm tourism businesses. “We need to be getting behind our businesses to get through the uncertainty that is being caused by Brexit,” he added. One delegate commented that her business rates had increased by 600 per cent and an extra tax could be the tipping point where she and other businesses considered whether it was worth carrying on. Mr Barsby said: “It does seem grossly unfair that businesses that invest in small towns and become a catalyst for regeneration are then a target for extortionate business rate rises.” Other topics raised by delegates were marketing themes chosen by Visit Wales, Broadband coverage in rural Wales, promotion of food tourism in the Cambrian Mountains and consistent signposting of visitor destinations. Mr Holt said schemes to promote wildlife and to attract more autumn visitors to Mid Wales could be considered for support from Visit Wales’ tourism product innovation fund and it was open to delegates to consider applications. Speaking about Broadband connectivity, Mr Mercer said it was a big issue for the farming industry. “We have been working hard with the Welsh Government and providers on really pushing for the roll out of Broadband in Wales,” he added. “Hopefully, we are seeing some progress. All the marketing in the world is no good unless you have the infrastructure to back it up.” He also emphasised the importance of linking food and drink tourism with farming. “We sometimes haven’t been ambitious enough,” he said. “There are some huge opportunities out there but we all need to work together to capitalise on them.” Ends For more information please contact either Val Hawkins, Mid Wales Tourism chief executive, on 01654 702653 or Duncan Foulkes, public relations consultant, on 01686 650818. A fresh, modern marketing campaign focused on social media is set to put the ‘Real Mid Wales’ on the map to visitors from across the UK.
The campaign was unveiled at the sold out annual Mid Wales Tourism and Business Conference which was attended by 130 guests at The Metropole Hotel, Llandrindod Wells on Friday. The conference, themed ‘Marketing the Real Mid Wales: A Shared Vision”, was sponsored by NFU Mutual, Aberystwyth and organised by MWT Cymru, an independent organisation that represents around 600 tourism and hospitality businesses across Mid Wales. MWT Cymru chief executive Val Hawkins and chairman Rowland Rees-Evans encouraged businesses and organisations involved in the tourism industry in the region to work together to promote the ‘Real Mid Wales’ message. The campaign will focus on the environment and nature, adventure and sport, health and wellbeing and transport routes. “Those of us fortunate to live in this beautiful part of the country all have our own ideas about what makes the ‘Real Mid Wales’ so special,” said Mr Rees-Evans. “The challenge for tourism and hospitality businesses is how best to share our enthusiasm to attract visitors. “With public sector funding under pressure, is it time for the industry to combine resources and collaborate on a concerted campaign to market the Real Mid Wales to target audiences? “This conference should help to focus all our thoughts on a shared goal: to attract more visitors and investment to Mid Wales.” Mrs Hawkins said the new marketing campaign would focus on raising visitor awareness about what makes the ‘Real Mid Wales’ special. It would be aimed specifically at the 20 million UK people in the 27 to 40 years age group who use the latest technology. “We have an opportunity to really put Mid Wales on the map and develop new content in a fresh, modern style,” she added. Keynote speakers were Welsh naturalist and broadcaster Iolo Williams, Visit Cornwall’s chief executive, Malcolm Bell, Mid Wales Regional Tourism Forum chair Steve Hughson, Visit Britain liaison officer Lowri Jones, NFU Mutual hospitality sector specialist Graeme Taylor and Kashing chief executive and co-founder Karen Rossouw. During his presentation, Mr Williams introduced delegates to a selection of the rare birds, animals, plants, woodland, insects, dolphins and lichens that live in Mid Wales and attract many visitors every year. One of it’s rarest inhabitants is a female golden eagle in the Tregaron area and he hoped that Mid Wales might in the near future attract a male eagle to give the country its first breeding pair for 450 years. He mentioned the Dyfi Osprey Project near Machynlleth as an example of wildlife attracting thousands of visitors to the region and said the bottle-nosed dolphins in Cardigan Bay attract tourism business worth £4 million annually. He welcomed the possibility of beavers being reintroduced to Wales and said they would be another popular attraction. However, he warned that the UK had lost 44 million birds since the 1970s and he was critical that wildlife and the environment continued to suffer in Wales from reduced government funding. He could not understand why Mount Snowdon attracted 444,000 visitors a year, yet the Mid Wales upland wilderness area of Elenydd, between Abergwesyn and Elan Valley, was often deserted. “Please look after our wildlife, respect it and make the most of it,” he added. “It’s a valuable resource that we should be tapping into.” Mr Bell outlined the work of Visit Cornwall and revealed that the county attracts 4.5 million staying visitors annually who spend £1.5 billion. Through sustainable, quality tourism, the organisation seeks to understand and fulfil the dreams of customers. “We are creating some of the richest memories in people’s lives and it’s all about helping our customers get the best possible experience,” added Mr Bell, who advised delegates to stay in tune with their customers by providing “something real and authentic”. Mr Hughson, chief executive of the Royal Welsh Agricultural Society, encouraged tourism businesses to capitalise on the major events held in Mid Wales, such as the Royal Welsh Show, which attracts 240,000 visitors and contributes £20 million to the economy. The average distance travelled by a person attending the show was 138 miles. “What the Royal Welsh Show does is pull the ‘Real Mid Wales’ together in on place,” he added. “Forty per cent of the people that come to the show are from a non-agricultural background and we are in the entertainment business. “There is a real cross over between agriculture and tourism and it’s key that we work together. We need to grasp the opportunities that we have on our doorstep to create lasting memories and experiences.” Lowri Jones outlined the work and marketing campaigns of Visit Britain to attract more visitors and encouraged Mid Wales tourism businesses to contribute content on the themes of food and drink, luxury, rail and gateways. Mrs Rossouw spoke about the benefits of Kashing’s complete online payment solution to tourism businesses. She said cashless transactions were predicted to increase to £14.5 billion by 2021. Mr Taylor highlighted the importance of delegates safeguarding their business with insurance cover against cyber crime and many other possible threats. Visit Britain has released the IPS figures for August. The headline figure is that revenue from overseas visitors to the UK has increased by 10% for the year to date. This means that the inbound sector is on track to generate an additional £2.2bn in export earnings this year, sufficient to generate over 40,000 new jobs. This is significant considering the impact that Brexit is having on the ability of tourism businesses in the UK to attract and retain the staff that they need for provide the level of service required.
Also in line with the econometric modelling, the drop in the exchange rate is having a much greater impact on long haul markets than it is on short haul markets – a 15% fall in the cost of coming to the UK has a much greater impact on a visitor's decision to come to the UK if they are spending £3000 on a trip than if they are spending £300 on a trip. The other main Brexit impact that is coming through from the figures is that while holiday visits are up 17% with visitors taking advantage of the low exchange rate, uncertainty over Brexit has caused business travel to decrease by 1%. Outbound tourism is still up 5% in revenue terms over the three month summer period. This indicates that the UK has a two-tier economy and that austerity, poor wage growth, increased inflation and an unfavourable exchange rate are not severely impacting the ability of a significant component of the UK population to take overseas holidays. A new poll has been launched by Mark Drakeford AM's Office to discuss the shortlist of tax ideas one of which is the Tourism Tax. English poll http://ow.ly/MV0130go1yw Welsh poll http://ow.ly/c9od30go1Qb
Attached is a copy of the Office for Tax Simplification’s new report, Value Added Tax: routes to simplification, which has just been published.
The report contains eight main recommendations which are as follows:
Mark Drakesford AM, the Cabinet Secretary for Finance has sent an initial response to Adrian Barsby, Chair of WTA. The return to the WTA appeal against the Tourism Tax can be downloaded here:
A proposed tourism tax would damage the economic performance, brand and prospects for Wales, warns a new report commissioned by the organisation that represents all sectors of tourism industry in Wales.
Wales Tourism Alliance (WTA) is pressing the Welsh Government not to choose a tourism tax from the four new tax raising power proposals it’s considering. The WTA is so concerned about the proposal that it has asked Annette Pritchard, professor of tourism at Cardiff Metropolitan University, to prepare a report on the subject. (See previous article for report link). Her report states: “The UK tourism industry has one of the world’s highest tax burdens. Most European countries have significantly reduced VAT on their tourism industries to encourage growth, employment and revenue. The imposition of higher taxes has been shown to inhibit growth, employment, revenue and holiday-taking. “Tourism outperforms all Welsh Government priority sectors and is the country’s second largest employer. A proposed tourism tax will damage its economic performance, brand and prospects. “It will also increase social exclusion, undermine policies to create a more healthy and active Wales, limit opportunities for economic growth in Welsh-speaking heartlands and disproportionately impact those least able to afford to take a holiday.” WTA chair Adrian Barsby has written to Wales’ First Minister Carwyn Jones, warning that tourism businesses had already faced significant business rate increases and a tourism tax would make them uncompetitive in the UK market. “Prices will rise and Wales will gain the unenviable reputation of being the only country in the UK which charges its visitors to stay,” he said. “This will damage the growth potential of the industry at a time when post-Brexit it may be called upon to play an even greater role in the Welsh economy.” Mr Barsby said the WTA acknowledged that the industry imposed additional costs on local authorities, but the Welsh Government’s formula for allocating financial support to councils made explicit provision for this. The WTA is seeking an urgent meeting with the Welsh Local Government Association to discuss ways in which the industry may be able to help. “We understand the pressures on local authorities at the most popular tourist destinations in Wales,” he added. “However, we believe that visitor management by the industry in collaboration with local authorities, Welsh Government and destination partnerships is the most sustainable way of dealing with such issues rather than a simple sledgehammer to crack a nut device such as a tourism tax. “I would add that whilst imposing additional costs on local authority services, tourism also helps to sustain a wider range of facilities for residents to enjoy than would be the case without the industry. “A tax on tourism businesses would damage local economies and affect employment prospects by making us less competitive with destinations in England.” Mr Barsby has welcomed a pledge by Ken Skates, Cabinet Secretary for the Economy and Transport, to consult fully with the industry on the tourism tax proposal. Mr Skates has been presented a copy of Professor Pritchard’s report to Mr Skates “This will give the alliance and other organisations an opportunity to elaborate further on how damaging this will be for the industry and the economy of Wales and that consequently it should not proceed,” he concluded. Ends For more information please contact either Adrian Barsby, Wales Tourism Alliance chairman, on Tel: 01352 741998 or 07921 787668, Paul Loveluck on Tel: 01686 650818 or Duncan Foulkes, public relations adviser, on Tel: 01686 650818. |