VisitBritain chair warns of challenges to growth

VisitBritain, the national tourism agency, has published its annual review of 2007/8, showing how its market intelligence and global reach has enabled the agency to continue a high level of performance against challenging market conditions.

During 2007 visitor numbers from traditional markets came under pressure from the combined effects of a strong pound, fuel and commodity price inflation and storm clouds over the financial markets of the developed world.

For the first time in a number of years the decline in visitor numbers from the developed world was not offset by growth in numbers from emerging markets. As a result, international visitor numbers fell by 150,000 to 32.6 million. Despite this decline, inbound tourism remains a significant contributor to the British economy, bringing in close to 16bn [pounds sterling] in foreign exchange earnings.

Domestic tourism in England also experienced a slight decline in 2007 both in terms of volume and value (net of inflation). Poor weather during the summer months of 2007 favoured indoor attractions but other sectors, particularly open-air attractions, were hit hard as Britons abandoned plans for domestic travel or travelled overseas to escape the weather.

VisitBritain said it "recognises the need to work with its partners in the nations and regions to get the British value message across at home and abroad against the growing challenge of new low cost destinations".

This autumn VisitEngland will lead in promoting this message with the launch of a tactical 1.5m [pounds sterling] marketing campaign promoting offers on short breaks and experiences in England. While in the key growth market of India VisitBritain will work in partnership with British Airways on a 500,000 [pounds sterling] campaign to promote Britain's modern and dynamic brand values with a fare offer starting at 126 [pounds sterling] return.

"The visitor economy in Britain continues to deliver great product and great service and our best tourism businesses win accolades and prizes around the world. We want to continue to flourish as a world-class destination and are working with industry leaders to address the challenges of our visa process and improve our welcome at ports of entry," said Christopher Rodrigues, chairman of VisitBritain. "With the global magnifying glass of the 2012 Olympic and Paralympic Games looming on the horizon we need to step up the pace of change.

'We were extremely disappointed by the Department for Culture, Media and Sport's (DCMS) decision at the end of 2007, to reduce our three-year funding settlement by over 20% (in real terms) just at the time the industry faces increased competitive and economic challenges," continued Rodrigues.

"VisitBritain will continue to focus its efforts on increasing the efficiency of its operations and improving the effectiveness of its marketing partnerships with the travel industry and the regions and nations. But it is difficult to avoid the conclusion that this uniquely severe budget reduction reflects, at best, evidence of other priorities and at worst a continued lack of support for the very significant contribution made by nearly 200,000 businesses large and small both to the visitor economy and to the British economy as a whole."

Rodrigues is leading the British Tourism Framework Review at the request of the Secretary of State for Culture, Media and Sport to identify ways in which to increase the efficiency and effectiveness of VisitBritain's operations and its relationship with the regions and nations and the tourism industry.

Following extensive consultations as part of the review process, VisitEngland will become more of a strategic body representing the devolved stakeholders of English tourism. Recruitment has started for a new chairman for VisitEngland to replace Hugh Taylor, whose term finishes at the end of the financial year, and for the new post of chief executive, VisitEngland.