British Hospitality Association identifies future risks

The Chief Executive of the British Hospitality Association (BHA), Ufi Ibrahim, recently revealed her thoughts as to the impact the Olympic Games are likely to have on the UK tourism industry, stating that they are expected to attract over 320,000 overseas visitors to London, which would never have come otherwise.

The opportunities for international exposure will be without peer and Ms Ibrahim stressed the importance to leave visitors with a positive impression to encourage return business. She also said that the experience of other host cities has shown that visitors tend to visit other parts of the country, which would roll out the benefits to the rest of the UK.

However, Ms Ibrahim also pointed out that there were several risks that could threaten the beneficial impact of the Olympic Games. One of the main concerns is the transition of Regional Development Agencies to Local Enterprise Partnerships and Destination Management Organisations. This will remove national co-ordination, which could impact negatively on tourism.

Similarly, the high VAT rate reduces the UK’s competitiveness compared with other European destinations, as do the visa costs and difficulties in completing visa forms; the increases in airport duty; and the reduction in funding of UK tourism agencies, which will prevent them from maximising their promotional efforts overseas as well as domestically.