Tax-free shopping should be revisited in tourism plan - Chamber

A new plan to drive recovery in the tourism sector has been welcomed, but business leaders have expressed their disappointment over a lack of reference to the importance of tax-free shopping for international visitors.

The government 's Tourism Recovery Plan sets out how domestic tourism can recover to pre-pandemic levels by 2022, and international tourism by 2023.

As part of the plan, a £10m voucher scheme is due to be launched by the National Lottery, whereby players will have the chance to claim vouchers to redeem at tourist attractions in the UK.

A rail pass for “staycationers ” will also be launched later this year, helping to make it easier and more sustainable for domestic tourists.

The new pass will build on the success of the BritRail pass, which is sold through VisitBritain and currently gives international visitors flexible travel across the country, as well as providing discounted entry to tourism attractions.

Before the pandemic, England looked set to hit 100 million domestic overnight trips in 2020. In 2019, 41 million international visitors came to the UK for business or leisure, spending more than £28 billion.

Henrietta Brealey (pictured), chief executive of Greater Birmingham Chambers of Commerce, said that the tourism industry had been “rocked to its core ” and the plan make sensible suggestions on how to boost hard hit sectors.

She said: “It 's fair to say the tourism industry has been rocked to its core by the pandemic and it 's reassuring to see that the Government has a blueprint in place to revitalise the sector.

“The plan contains a number of sensible options which will offer a boost to the hospitality, retail and events sectors amongst others - we also welcome the offer on rail passes for staycations which will not only drive up consumer demand for travel but also help to reduce congestion on the roads.

“It was also pleasing to see specific focus around maximising the benefits of the 2022 Commonwealth Games - the project is expected to create thousands of jobs in our city and will play a vital role in stimulating an economic recovery as we emerge from the pandemic. ”

But Ms Brealey added that government may wish to revisit its policies on ending tax-free shopping for tourists next year.

She said: “Nevertheless, it 's disappointing to see a lack of reference to the importance of tax-free shopping for international visitors - a policy which was inexplicably jettisoned by the Treasury last year.

“Inbound tourists make a huge contribution to the West Midlands visitor economy and tax free shopping served as a huge incentive to international visitors.

“We would urge the Government to revisit this policy as it would not only enhance the appeal of our region but also the reputation of the UK as a global tourist destination. ”