IHG urges govt to boost ‘vital’ £32bn visitor economy

IHG Hotels and Resorts has urged the government to ensure that the UK’s visitor economy continues to thrive, after a new report in partnership with the British Chambers of Commerce (BCC) forecasted that overseas visitors will spend £32.5bn this year. The report, which includes a series of recommendations to policymakers, called on the government to reform apprenticeship funding in England to support more training by firms in the visitor economy, as well as a reform of business rates to reduce the multiplier for both small and standard rates. Crucially, the IHG-backed report urged the government to reconsider the evidence around tax free shopping for visitors and the benefits it could have on local economies. The report stated that the visitor economy is critical to driving growth and job creation in the UK economy, citing that in 2023 38 million overseas visitors travelled to the UK and spent £31.1bn. That figure is forecast to increase to £32.5bn this year. The report urges caution around the introduction of visitor levies and tourist taxes, warning that they risk being “an economic disincentive for the tourism industry”. It also calls on the government to reconsider the decision to scrap tax-free shopping for overseas visitors in 2020, adding that the consequence of not re-introducing a similar scheme “could lead to further damage to our international competitiveness as a global visitor destination”. Alex Veitch, director of policy at the British Chambers of Commerce said: “Brexit and the Covid pandemic dealt a severe blow to the UK’s visitor economy. While recovery has been promising, major challenges still persist. Our report outlines urgent steps the government must take to boost visitor numbers and drive economic growth. “The UK has a proud tradition of welcoming the world. For our tourism sector to flourish in this post-pandemic, post-Brexit landscape, decisive action from the Government is essential.” Yasmin Diamond, executive vice president of global corporate affairs at IHG, added: “Hospitality and tourism play a key role in the everyday economy, supporting millions of jobs and operating at the heart of communities across the nation. It is a real growth industry, which generates billions worth of exports, attracts capital to the UK and acts as a huge contributor to national GDP. “To support the visitor economy so it thrives, and helps drive wider economic growth and job creation, it’s vital that the UK is an attractive investment environment to start and grow a business, and a great place for people to live, work and visit.”