The Telegraph this weekend ran the headline ABTA issues Darling with rescue plan for tourism. But where was the plan? I then re-read the letter from ABTA Chief Executive, Mark Tanzer to the British Chancellor and still struggled to see any “plan”.
The letter basically says Britain is taxing the travel industry too much. I think many within the industry will agree, but a letter of complaint doesn’t constitute a plan. It reads like an employee asking for a pay rise and when asked why, responding by saying “because I want more money”.
Sadly, there is no meat to the letter at all, no real thought in it and no original thinking. There’s no effort to persuade or provide food for thought for Mr Darling, just a vague hope that if you say “please Sir, don’t tax us so much”, Darling will say “Oh, alright”.
Politicians respond to figures and proposals that will have political impact, not just vague requests. If Tanzer had said that the introduction of the APD hike in November 2010 threatens x UK jobs, or will result in a reduction of tax income from UK tourism of £y, his letter might have stood more chance of being listened to.
With APD, don’t just say scrap APD because the Dutch have. It is too soon to see any impact from the Dutch decision, but it would have been possible to highlight some of the political thinking behind the Dutch decision.
With visas, what is the point of saying they cost too much? If they are a deterrent to people travelling, then come up with figures. If Tanzer had said a reduction of 20% in visas costs would result in an increase of x% in inbound visitors and a net gain to UK income of £y then Darling maybe would listen.
Likewise, his point about financial protection is very valid, but saying to the government, “please come up with a solution” isn’t very helpful. Why not offer to work with the government to find a solution, or better still propose various solutions? Everyone complains about financial protection yet nobody seems to come up with many ideas.
The point about TOMS is very valid, but the main point is that messing around with it could result in consumers paying VAT twice and would push more people to book directly with hotels overseas. This would take consumer money directly out of the UK rather than generating tax revenue and UK jobs through booking with a UK operator. Asking Darling for action on this before the EU have even come up with any proposals also seems a bit of a waste of time.
Unfortunately, the letter lacks any real meat and will in all likelihood have no impact. It was probably written quickly and at least Tanzer will be able to say he tried and hopefully for him that will keep the ABTA faithful happy.
