Rt Hon Philip Hammond MP
Chancellor of the Exchequer,
1 Horse Guards Road,
London SW1A 2HQ
17th October 2018
Autumn Budget 2018: Considerations for Wales Tourism Industry
The tourism industry in Wales has consistently demonstrated a very high return on public investment and has been at the forefront of the UK’s economic recovery. VisitBritain calculates that it only takes £26 of public funding to generate £624 of additional tourism revenue for the UK – which equates to just £225 of investment to create an additional job. This is supported by Office for National Statistics research which show that tourism generates considerable additional employment, export earnings and revenue for the Exchequer.
Within Wales tourism generates approximately £6 billion of visitor spend and provides jobs for 172,000 people. In economic terms it contributes 13% of GDP to the nation which is significantly higher than in England (8.6%), Scotland (10.4%) and Northern Ireland (5%). But tourism in Wales operates in an increasingly competitive global marketplace, which can be evidenced by the recent publication of IPS data. Feedback received from our members invariably focuses on rising operating costs together with threats posed by external agencies and even the threat of new taxes, while other industries receive substantial subsidies.
The Wales Tourism Alliance believes that to maintain and grow market share, a number of measures should be considered by the UK Government and be part of the new Tourism Sector Deal specifically highlighting Wales. This would alleviate financial pressures, provide a more equitable trading environment – and create additional trading opportunities:
Therefore, I am taking this opportunity to draw your attention to a number of issues that the Wales Tourism Alliance members are particularly concerned about:
Ours is an industry that post BREXIT contains considerable opportunities for growth, but growth that is dependent on both Wales devolved Government and the UK Government delivering in partnership. We understand the pressures on your department, but believe that the value of tourism to the UK and Welsh economy, requires that you pay this sector more attention in relation to the points above.
Thanking you for your attention.
Chair - Wales Tourism Alliance
97 Harbour Village,
Wales SA64 0DZ