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UK tourism industry examined

Summary

Tourism is the UK's fifth largest industry, employing over 1.4 million people and generating over £85 billion for the economy every year.

This Report, 'Tourism' (HC 133-I), examines tourism from a broader perspective, looking at governance, funding, skills, and the environment. An earlier report, 'Structure and Strategy for Supporting Tourism' (HC 65, 2002-03), focused on the structure of the tourism industry.

The Department for Culture, Media and Sport (DCMS) is the sponsor department for tourism, whilst promotion of UK destinations overseas is the responsibility of VisitBritain. The English Regional Development Agencies (RDAs) have responsibility for regional tourism.

In the past decade there has been little growth in the domestic tourism sector, which accounts for 80% of the value of the industry. The Committee expressed a strong reservation in the funding cut to VisitBritain by the DCMS, from £49.9 million to £40 million. This funding cut could also have an impact on the marketing and promotion of UK tourism overseas with the 2012 Olympic Games representing a major opportunity for the UK's tourism industry.

The Report sets out a number of other conclusions and recommendations, which include:

  • The Committee sees insufficient incentives for local authorities to invest in tourism.
  • The Committee expresses concern at the lack of confidence displayed by the tourism industry in DCMS.
  • The Committee would like to see tourism becoming a mainstream issue in government.
  • The Committee supports the Government's initiative in raising the quality of accommodation and in increasing the number of those accredited.
  • The UK is perceived to have poor levels of customer service, despite £500 million being spent by the public sector on skills development.
  • The Committee feels that there is too heavy a reliance on a migrant workforce in the tourism industry and greater efforts are needed to employ locally unemployed people.
  • The cost of visiting the UK is also expensive, in part due to charges payable by overseas visitors, averaging £207 per person in visa, taxes, and other government charges.
  • The Committee recommends that the Government reviews options that would make obtaining a visa a simpler process.

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Law-Making Explained

This is a House of Commons paper (HC 133-I, 2007-08). It is a Report from the House of Commons Culture, Media and Sport Committee.

Find out more about House of Commons papers.


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