January 2007 NEWSLETTER

TA reception for British tourism week 12-18 March

British Tourism Week is approaching and the planning for it is fast coming together. The week, which aims to raise the profile of the industry, its importance to local and national economies and highlight the skills and talent of the people at its core, is being launched by the Prince of Wales and will feature a series of events around the country ranging from BTTF through to a challenge for all MPs to visit tourism businesses in their electorate.

As part of BTW, the Tourism Alliance is holding a reception for MPs at the Marriott County Hall in London on the evening of 12th March 2007. The Guest Speaker at the reception will be Christopher Rodrigues CBE, the new Chairman for VisitBritain who will be giving his first public speech in that role focusing on the economic and social benefits derived from a vibrant tourism industry and what Government can do to support the industry.

To help promote BTW, a dedicated website (see link below) has been created to provide information on all BTW events and give members of the industry and the general public the opportunity to register their support.

Click Here for further information on British Tourism Week

Aviation included in eu trading scheme

The European Commission has announced that aviation will be included in the new EU Emissions Trade Scheme aimed at preventing climate change. It is proposed that, from 2011, all flights within the EU will be included in the European Emission Trading Scheme with the total level of emissions being capped at the average level of emissions in 2004-06. The vast majority of the allowances to be traded will be allocated free-of-cost to airlines on the basis of their historical share of traffic rather than being auctioned as had been advocated by some environmental groups. This will result in a more level playing field for all airlines rather than a situation where a few major airlines were able to buy most of the available allowances.

The scheme will apply to all airlines regardless of whether or not they are EU based and will be extended in 2012 to all international flights arriving into, or departing from, the EU.

The proposals form part of a draft EU directive that will also see more funds being allocated to developing more efficient technology for the aviation sector and look to resolve the problems associated with the EU's outdated air traffic control system. The inefficiencies of the system are estimated to increase aviation emissions by 15% for EU travel.

This is a result that has long been argued by the aviation industry as a means of addressing the issue of climate change by using market forces to drive efficiencies. It contrasts sharply to the doubling of Air Passenger Duty, which simply increases costs and does nothing to prevent climate change.

private members bill on double summertime

The Tourism Alliance is supporting Tim Yeo MP, who has drawn second place in last year's Private Members Bill ballot and is introducing the Energy Saving (Daylight) Bill.

The Bill, which would see clocks move forward one hour in winter and two hours in summer is being introduced on the basis of research from Cambridge University that found that an addition hour's daylight would reduce energy consumption by an estimated 3% and reduce carbon emissions accordingly.

In addition to the environmental benefits, the move to Double Summertime would also provide a number of additional social and economic benefits. These include;

1. Reducing serious injuries and deaths associated with road accidents by an estimated 400 per annum

2. Increasing the amount of available daylight leisuretime by an estimated 40%

3. Increasing tourism receipts by an estimated £1.4bn per annum

A proposal to move to Double Summertime was last seriously debated by Government over 10 years ago when it was defeated due to concerns expressed in Scotland. This new Bill hopes to avoid this pitfall by allowing separate votes in the Scottish Parliament, the Welsh Assembly and the Northern Ireland Assembly.

The Bill is receiving cross-party and cross industry support, and a recent YouGov survey for Days Inn hotels showed that 54% of the general public support the change.

For the Bill to progress it requires the support of 100 MPs on its second reading on 26 January 2007. The Tourism Alliance and its members are writing to MPs urging them to attend this vote to ensure the progression of the Bill.

Click Here for a copy of the Tourism Alliance briefing sent to MPs

Ireland shows westminster the way

While the UK Government continues to overlook the value of tourism to the economy, the Irish Government is forging ahead with plans to further increase their tourism industry. In stark contrast with the Chancellor’s announcement in the Pre-Budget Report that Air Passenger Duty would double on 1 February, the Irish Finance Minister, in his Pre-Budget Report, announced that the Irish tourism budget will be increased by 9% in 2007 to £98m and the marketing fund will be in the region of £30m – a 12.5% increase on 2006 year.

In announcing the increase, the Irish Finance Minister stated that, "as is the norm for investment in tourism marketing, the Government can expect to reap as much as a seven fold return on its extra investment. It is essential that tourism marketing and tourism product development continue to be high priorities as these joint activities deliver substantial economic benefits throughout the country in general and particularly in rural areas. This activity contributes up to €2.5 billion annually to the Government tax take."

(some) smoking regulations released

With the smoking ban announced for 30 June 2007, the Department of Health has been slow to produce the regulations that the industry requires to plan for the change. However, the two most important sets of regulations were released just before Christmas – the Smoke-free (Premises and Enforcement) Regulations and the draft Smoke-free (Signs) Regulations.

The Premises and Enforcement Regulations are the most important as they include definitions of “enclosed” and “substantially enclosed spaces” which are required by businesses so that they can develop outside areas for smokers. The regulations state that an area is deemed to be outdoors (and therefore available for smoking) if less than half the area is enclosed by walls, whether they be permanent or temporary. It should be noted that the smoking ban does not apply to hotel rooms that the hotelier deems to be smoking rooms.

The second set of regulations relate to the signage that all public buildings will be required to display come 1 July 2007. The proposal is for an A5 size sign with the no smoking symbol and stating "No Smoking. It is against the law to smoke in these premises" to be placed on every entrance to the building. It is worth noting that the signage requirements are not finalised as they are being considered by EU under the Technical Standards Directive and will be laid before Parliament after the three month consultation process is complete.

Three further sets of regulations will be published shortly containing: exemptions and vehicles; penalties and discounted amounts; and offences in vehicles and the format for fixed penalty notices.

Click Here for a copy of the Regulations

tourism day visits worth more than £37bn

For the first time since 2002/3, there is a new estimate of the volume and value of tourism day visits to the economy. Natural England, formed through the merger of the Countryside Agency, English Nature and parts of the Rural Development Service, has just released the England Leisure Visits Survey which contains a large section that analyses tourism day visits.

This survey indicates that the value of tourism day visits in England by the English has risen by 21% since 2002/03 to £37.4 billion. However, while value of tourism day visits has increased the number of visits has fallen by 5% to 870 million.

Combining this report with the International Passenger Survey and the UKTS figures means that the value of tourism to the UK economy is at least £73bn, not including day visits in Scotland and Wales. It is hoped that the data from the Natural England survey can be used to develop a figure for total UK tourism day visits. If this can be achieved, we will have an estimate of total tourism expenditure in the UK for the first time in four years.

Click Here for a copy of the report

new annual Leave consultation

There are an estimated six million workers in the UK whose annual leave entitlement of 20 days includes the eight statutory holidays. As part of its last election manifesto, the Government made a pledge to ensure that annual leave entitlements for these workers where increased by eight days so that everyone receives a minimum of 20 days leave per year.

In consultations last year, it was pointed-out that about half of the additional cost of the proposed change (approx £2bn per annum) accrued to the tourism and hospitality sectors. As such, the Alliance advocated that a phasing-in period was required to allow these businesses to adapt to the increased costs.

We are, therefore, pleased to see that the Department of Trade and Industry has headed advice from the industry regarding the implementation of legislation by issuing another consultation document proposing a two year phasing-in period for the new annual leave entitlement.

The new consultation proposes that the new entitlement be introduced in two stages with four days additional leave being introduced on 1 October 2007 and the second four days being introduced on 1 October 2008.

The consultation closes on 13 April 2007

Click Here for a copy of the consultation document

skills passport update

UK Skills Passport is the new on-line communication channel developed by People1st with support from BHA and the wider tourism industry. While it records and verifies qualifications,it alsoprovidesaccess to a system of career development and training, benefiting both employers and employees, and signposting industry to qualifications and funding that meetsbusiness needs.

At the launch, the Tourism Minister outlined Government's unqualified support for the system and encouraged the industry to get behind it, saying how vital this was for improving skills within the industry and ensuring that the UK continued to be a world-class destination.

The UK Skills Passport will also play an important role in DCMS’s National Skills Strategy, which is due to be launched later this year. It addresses many of the issues that have been discussed at the Minister’s Skills Summits – in particular the need for clear information on how to access support for training and much better opportunities for career development.

Click Here for more information on UK Skills Passport

Click Here for more information on DCMS’s National Skills Strategy

hr advisors for small businesses

People1st have secured funding from the European Social Fund to purchase 5,000 HR Business Adviser licences, which will enable 5,000 small businesses to benefit from free employment and HR advice for a year.

Poor staff retention one of the main employment-related problems continually identified by the tourism industry as a reason for low standards. The ability to retain staff longer leads to lower business costs, improved customer service and greater profitability. This is particularly apparent in tourism SMEs where turnover rates are particularly high.

According to People1st research, 76% of tourism businesses are micro businesses employing less than five staff. However these businesses are important to the sector as a whole as they employ 45% of all those who work in the tourism industry. The cost to these business of replacing a member of staff is between £1500 and £4500, meaning that the total cost to industry of high staff turnover (for all sized businesses) is nearly £1 billion each year.

Click Here for more information and an application form to apply for an advisor

The Tourism Alliance

The Tourism Alliance is the Voice of the Tourism Industry.

Established in 2001 with the support of the Secretary of State for Culture, Media and Sport, the Tourism Alliance comprises almost 50 Tourism Industry Organisations that together represent some 200,000 businesses of all sizes throughout the UK.

The purpose of the Tourism Alliance is to identify and develop policies and strategies to raise standards and promote quality within the industry and work with and lobby government on all key issues relevant to the growth and development of tourism and its contribution to the economy.

Chairman: Tony Millns

President: Richard Lambert

Policy Director: Kurt Janson

Email:

Telephone: 020 7395 8246 Fax: 020 7395 8178 Mobile: 07964428123

Website: www.tourismalliance.com

Tourism Alliance: Centre Point, 103 New Oxford Street, London, WC1A 1DU

1