UKinbound, a travel trade association focused on the interests of the UK's inbound tourism sector, has found that tourism businesses, including destination management companies (DMCs), are at ‘grave financial risk’ due to the Government’s lack of understanding of the leisure sector.
Despite the Chancellor and HM Treasury’s repeated statements that all businesses in the leisure sector are eligible for support, many of the association’s members can’t secure Business Rate Relief and related grants from their local authorities, because MHCLG does not believe tour operators are part of the leisure industry.
“This arbitrary decision to instruct local councils to exclude certain tourism businesses from vital financial support is not only confusing and frustrating for all involved, it also shows a real lack of understanding of how our industry operates,” said Joss Croft, CEO, UKinbound.
The decision to exclude tour operators and DMCs from claiming financial relief was based on the premise that clients do not enter premises to make a purchase. Despite this evaluation, Croft was keen to remind the government that the UK tourism sector contributed £28.4 billion for the UK economy last year and failing to help DMCs and tour operators means risking losing the key businesses which significantly contribute to local authorities' budgets.
UKinbound has already written to the Ministry of Housing, Communities and Local Government (MHCLG) urging them to amend the guidance to local authorities on Business Rates Relief and grants.
“We are therefore asking Government to amend the guidance to Local Authorities on Business Rates Relief and grants as quickly as possible, so it fully reflects the Government’s intention to provide support for all leisure businesses,” added Croft.
Roberto Pardal, director of DMC Eurowelcome added that he is “amazed” and “angry” by the distinct lack of recognition the inbound visitor industry has had with regards to government grants. “Many inbound tour operators will not survive without the Business Rates Relief and grants and yet the whole of the UK will need these businesses if the country is to see inbound visitors return in the medium to long term."
A desire to travel led Holly Patrick to the business meetings and events world and she’s never looked back. Holly takes a particular interest in event sustainability and creating a diverse and inclusive industry. When she’s not working, she can be found rolling skating along Brighton seafront listening to an eclectic playlist, featuring the likes of Patti Smith, Sean Paul, and Arooj Aftab.
