Foreign tourism spending in Bedfordshire has risen since the pandemic

The chief executive of UKHospitality – which represents the hospitality sector across the country – said the UK's high rate of VAT is holding it back compared to European neighbours, and called on the Government to boost its competitiveness.

New data released by the Office for National Statistics shows international visitors to Bedfordshire and Hertfordshire spent £559 million in 2022, the most recent year with available figures.

This was slightly up from £531 million in 2019, before the coronavirus pandemic, while £333 million was spent a decade earlier.

Nationally, foreign tourism spending hit £50 billion in 2022, a 7% increase on 2019, and the highest figure on record.

It also represents a 63% increase over the prior 10 years.

However, a spokesperson for the Tourism Alliance, which represents different sectors across the UK tourism industry, said for many of its members "it is not a happy picture".

"Many are struggling," they said, warning the Chancellor’s changes to National Insurance contributions announced in the last Budget would "hit our sector hard".

Many businesses reported higher taxation as the biggest challenge, with many pubs struggling as one in four say they believe their future is "untenable".

Five out of the top six areas for international spending were in Greater London, with Eastern Scotland in fourth place.

West Central Scotland saw the greatest increase over the decade, with spending more than trebling from £368 million to £1.1 billion.

Meanwhile, Northern Ireland, the West Midlands and Devon all saw their income fall over the last 10 years.

In Bedfordshire and Hertfordshire, £182 million was spent on hotels and restaurants, and £27 million on recreation and culture.

The Tourism Alliance spokesperson added: "We are pleased the Tourism Minister announced a new 50 million inbound visitor target by 2030.

"We applaud that ambition, as well as his intention to publish a tourism growth plan later this year."

"We need to tackle our high visa fees and ensure that we do not further increases taxes on tourists and tourism businesses," he added.

Kate Nicholls, chief executive of UKHospitality, said: "Whilst foreign tourism spending may have exceeded 2019 levels, it hasn’t kept up with inflation within the hospitality sector, meaning in reality it's still below pre-pandemic levels in real terms.

"The Government should improve the UK's tourism competitiveness, particularly through a lower rate of VAT for hospitality and tourism. Currently, the UK's 20% rate of VAT ranks as one of the highest in Europe and is one of the major factors holding the sector back."

She also called on the Government to delay its planned NIC changes and review the proposed business rate reform.

"The enormity of the cocktail of costs being imposed upon hospitality venues is unprecedented and, for many, completely unsustainable," she added.

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