Skip to main content

TOURISM AND THE 2015 GENERAL ELECTION

As we are all aware, tourism is one of the major industries here in Wales, employing thousands of people and bringing wealth into local communities across the region.

Whilst business support for tourism has been devolved to the Welsh Government since 1999, the general election in eight days time still gives us the opportunity to assess the level of importance attached by each of the parties to the industry.

Indeed, many would argue that it has become largely a forgotten industry when it comes to government economic policy over the last two decades, certainly as compared to interventions for sectors such as oil and gas, manufacturing and the creative industries.

Yet tourism could contribute so much more to the development of the UK economy if it was properly supported. Given this, what have the main political parties promised the industry if they gain power next week?

As the British Hospitality Association point out, perhaps the biggest disappointment is to be found in Labour’s manifesto.

Given that the Welsh Labour Government has been highly supportive of the industry during the last four years, it is somewhat disappointing that there is almost no mention of what the UK Labour Party will do to support tourism if it wins in just over a week's time. Indeed, one would have expected some policy focus on tourism given that it is looking to take seats from the other parties in a number of coastal constituencies in Wales.

In contrast, two of the parties have promised that tourism will have a greater priority within Government if elected. UKIP has called for the creation of a dedicated Minister of State for Heritage and Tourism that would be based within the Cabinet office, whilst the Liberal Democrats will give tourism a higher status within the Department for Culture Media and Sport.

And in keeping with their overall policy approach, the Green Party wants to introduce a certification scheme that rewards ecotourism and makes Wales a world leader in such standards.

Not surprisingly given their business friendly policies, the Welsh Conservatives are the only party to specifically highlight the value of the tourism industry to the UK economy in their manifesto. To support its future, they have promised improvements such as greater investment in the transport infrastructure in the UK (including the electrification of the North Wales railway line) and a greater focus on recruiting more apprentices in the industry.

In order to attract the number of international tourists to Wales, they will continue to support UK government initiatives like the GREAT campaign to market Wales to overseas visitors. They will also speed up the visa process, which could result in more tourists arriving from fast growing countries such as China.

Unfortunately, many in the industry remain disappointed that the Chancellor of the Exchequer is currently unpersuaded of the case to reduce VAT on tourism. Although given the fact that a growing number of Conservative MPs such as Guto Bebb in Aberconwy have supported action to cut this tax from 20 per cent to 5 per cent, that may change after the election.

A similar view is taken by the Liberal Democrats within the UK Coalition Government and despite also having individual MPs backing a reduction in VAT for tourism businesses, their manifesto does not mention a potential change to this policy within their manifesto.

In contrast, both Plaid Cymru and the Green Party have said that in order to make destinations in the UK more attractive, they would support a change in VAT. The SNP has also stated that they would also examine this issue in order for tourism firms in the UK to have a level playing field with the rest of Europe.

Therefore, it would seem that each of the parties have different views on the relevance of tourism within their manifestos. However, given its growing importance of tourism across many parts of the UK, it should not be ignored by politicians, especially here in Wales, as we approach what could be one the most important elections in modern times.

Popular posts from this blog

THE IMPORTANCE OF FRANCHISING

When we talk about start-ups and entrepreneurship, rarely do we discuss the potential of franchising not only as a way of establishing new ventures in the economy but also as a method of growing existing businesses. According to the British Franchising Association, franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor. The franchisee also receives initial training and ongoing support, comprising all the elements necessary to establish a previously untrained person in the business. This enables individuals to start their own businesses without having to develop their own ideas and utilising an existing brand and established market. Of course, whilst each franchise business is owned and operated by the franchisee, the franchisor controls the quality and standards of the way in which the business is

THE MANUFACTURING STRATEGY FOR WALES

Last night, I received the following comment on the previous post relating to a piece I had written back in early 2007 about the state of the manufacturing sector in Wales. "Dylan, you seem to be ignoring the fact that manufacturers in Wales have written the manufacturing strategy. Small and large manufacturers, all represented at the Manufacturing forum, have co-written this strategy. WAG has recently supported this strategy and have funded a co-ordinator with resources. Manufactures are happy with this progress as they are following the strategy they wanted. I know that the Conservatives have attacked the strategy as they seem to think that WAG wrote the strategy. They couldn't be more wrong. The Manufacturing Strategy was written by manufacturers, for manufacturers and is supported by WAG. If you don't agree with this, then I can invite you to the next Manufacturing Forum and you can explain to the manufacturers how their strategy is wrong....I appreciate that there is

INTRAPRENEURSHIP

Whilst we often consider entrepreneurship to be associated predominantly with new start-ups, larger firms - in order to compete effectively in fast-changing global markets - are adopting more innovative and enterprising approaches to management within their organisations. One of these approaches is the development of entrepreneurship within a corporate environment (or intrapreneurship). Research has shown that intrapreneurship is not easy, and there are considerable differences between an intrapreneurial and a traditional corporate culture, with the latter having an emphasis on a culture and reward system that tends to favour caution in decision-making. For example, large businesses rarely operate on a "gut-feeling" for the market-place, as many entrepreneurs do. Instead, large amounts of data are gathered before any major business decision is made, not only for use in rational business decisions, but also for use as justification if the decision does not produce optimu