Campaign To Cut Tourism VAT In The UK

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28 Nov 2012

Campaign To Cut Tourism VAT In The UK

As reported previously in RDO news, a new website for the campaign to reduce VAT in the UK, , has been set up and the formal launch will be held at the Tourism APPG Meeting in Westminster on Tuesday, December 4.


By means a background, of the 27 EU member States, only four (Denmark, Lithuania, Slovakia, and the UK) do not take advantage of a reduced rate of VAT on visitor accommodation, while the UK is one of only 13 EU countries that apply the full rate of VAT on admissions to amusement parks and one of only 10 countries that applies the full rate on admissions to cultural attractions.


A report by Treasury adviser Professor Adam Blake, using the government’s economic Computable General Equilibrium (CGE) model, concludes that cutting tourism VAT to 5% is “one of the most efficient, if not the most efficient, means of generating GDP gains at low cost to the Exchequer that we have seen with the CGE model”.


Findings by Professor Blake and a major independent analysis by Deloitte/Tourism Respect show that reducing VAT on key tourism services such as visitor accommodation and entry to attractions would:


• Boost GDP by £4bn a year


• Create 80,000 jobs over 2 to 3 years


• Deliver £2.6bn to the Treasury over ten years


RDO members operating in the UK are asked to e-mail their MP and members of the House of Lords to encourage them to attend this meeting. The details are as follows:

Meeting: Tourism All Party Parliamentary Group


Date: Tuesday 4th December 2012


Time: 4 – 5pm


Venue: Committee Room 20, House of Commons


Subject: Cut Tourism VAT Campaign Launch


Campaign factsheet: UserFiles/Cut Tourism VAT FACT SHEET 22nov12 pdf.pdf


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