Recession to cost 11bn [pounds sterling] in tourism

Leisure Report, Dec, 2008

A recession could cost 11bn [pounds sterling] in lost revenue through tourism, according to a study for VisitBritain, conducted by Deloitte.

Rashid Bashir, the author of the report and a senior economist at Deloitte, said: "The Visitor Economy is critical to Britain and should not be taken for granted. Neglecting the travel and tourism sector could lead to competitive disadvantage and diminished economic outcomes for UK PLC. The current downturn highlights the need for a diversified economy to maximise employment and enterprise opportunities for people at all skill levels.

"Effective support and investment now will position the sector to take advantage of the next upturn, which could gain extra momentum from London 2012. Combined, these two factors could act as a major boost to the UK economy."

VisitBritain is calling for a public-private partnership and fund to promote Britain in a spring campaign, to take advantage of sterling depreciating against both the US dollar and the Euro as well as reminding Britons that holidaying at home supports British jobs.

The report comes as the British Tourism Framework Review is nearing completion. The review, commissioned by the DCMS is examining the entire infrastructure surrounding the Visitor Economy to ensure that spending is directed as efficiently as possible and is leading to a restructuring of VisitBritain.