The Tourism Alliance has produced Tourism after Brexit to highlight the success of the UK tourism industry and identify the core policies that Government needs to adopt to ensure that the industry continues to provide growth and employment for the UK economy in a Post-Brexit environment.
While all other major European tourism destinations apply a Reduced Rate of VAT to tourism products (averaging 10.5%), the UK applies the Standard Rate of 20%. This puts the UK at a severe competitive disadvantage. Reducing VAT to 5% on accommodation and attractions will create 80,000 jobs and provide a return to the Exchequer of £2.6 billion over 10 years.
The UK's Air Passenger Duty (APD) has risen over 360% since 2007 and is now the highest passenger tax in the world. Research by PWC shows that significantly reducing or abolishing APD would provide an immediate and lasting boost to UK economic growth and be revenue neutral for the Exchequer.
The Tourism Alliance is calling on Government to take the opportunity to provide a £2.2bn boost to the UK tourism industry and create 40,000 new jobs by cutting unnecessary EU Red Tape which restricts domestic tourism growth through reforming the Package Travel Regulations to exclude Value-Added products.