THE head of a major tourist industry body yesterday “stunned” a major summit by claiming Brexit could trigger a visitor boom.
The claim was based on the suggestion that the struggling pound will attract more holidaymakers from the EU.
Nick Varney, chairman of the British Hospitality Association (BHA), told delegates in London they should “seize the opportunity” despite turbulence in the financial markets and consumer fears about Britain’s exit from the EU.
Varney, chief executive of Merlin Entertainments, which runs Alton Towers, Legoland and the UK-wide Dungeons attractions and Sea Life centres, said: “I think it is a good thing that the pound is devalued relative to the euro. If we had voted to remain, putting all other issues to one side, we would have been left with a very uncompetitive currency from the view of exporters and the tourism industry in general. What I think we have to do is lock that competitive advantage in so we get to sort of pick up with renewed vigour the whole argument for cutting tourism VAT on accommodation and on attractions.”
Markets remained volatile yesterday, with the pound dropping to a new 31-year low against the dollar and sinking 2.6 per cent against the euro to €1.19990.
Varney said: “Tourism and leisure can continue to grow under Brexit. Initially, a weaker pound will encourage visitors and also exports will flourish.”
Rafat Ali, founder of global tourism news and analysis service skift, said the comments left the annual summit “stunned”.
However, Varney said a Remain vote would have resulted in lower tourism numbers, stating: “I feel positive.”
Hospitality and tourism is the fourth largest employer in the UK, with 10 per cent of the workforce employed in 180,000 firms from independent restaurants to major hotel chains and visitor attractions. According to the BHA, the industry created almost 600,000 new jobs over the course of the last parliament, amounting to one in three of all new posts.
But despite Varney’s statements on the opportunity Brexit could provide, the association is calling on the government to “urgently clarify the issue of movement of labour which is so important to the growth and expansion of the sector and reassure our workforce that they are both welcome and valued”.
In a keynote speech at the event, Scottish Tourism Secretary Fiona Hyslop underlined the importance of extending a “hand of friendship” to the EU workers already staffing the hospitality sector, calling them “vital to our industry” and stating that Brexit is not necessary to reduce VAT.
Meanwhile, business economist Andrew Sentance of PwC said: “The travel and tourism industry is actually a big exporter but we are used to thinking of exports as goods and cars and things like that.
“I think the travel and tourism industry can work with other service exporters, which include creative industries, business services, even the financial sector, to make the government aware that these service exporters are vitally important to the UK economy.”
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