The Government still needs to do more to help realise the Olympic legacy, according to delegates at the latest World Travel Market (WTM) Meridian Club Think Tank.
Senior buyers from the WTM Meridian Club, hoteliers, wholesalers, inbound operators and Travel Management Companies (TMCs) met in central London last week under Chatham House rules with the Olympic legacy top of the agenda for discussion.
Many of the inbound tour operators in the room admitted they “didn’t bother” including London in their packages during the Games because of the lack of available rooms. Some operators replaced London with Liverpool, Manchester and the West Country, while Edinburgh also benefitted from displaced business.
One TMC, which required rooms in London during the Games, focussed on hotel chains with experience of Olympics allocation, so that when rooms were put back onto the open market the TMC was first in line.
One Chinese specialist said the business was unable to secure rooms in advance of the Games, but when a few weeks before the event rooms became available it was unable to take them at such short notice.
It was noted that some hotels had held out for Olympic business and ignored long-standing relationships. One delegate said this had left a sour taste.
Most believed that London had benefitted from not only the exposure of the Games but also the positive publicity relating to how the public transport had worked.
Nonetheless, many expressed concern about the cost of getting around London for visitors, particularly those who came from cities where public transport is significantly cheaper. Concerns were also expressed about the cost of hotels in London compared with other European cities.
Many voiced the view that the UK government was not doing enough to help the industry. Hoteliers in particular noted that the UK industry is subject to 20 per cent VAT, while European rivals pay single-digit rates.
Visas were also a big concern, particularly the UK’s insistence that Chinese visitors require a separate visa to visit the UK, whereas a Schengen visa gives Chinese visitors access to all of Europe’s hotspots.
The UK attracts only 300,000 visitors from China a year compared to France – part of the Schengen zone – attracts eight times as many. Chinese visitors to Europe are also very high spenders, it was pointed out.
The Government’s move to cut VisitBritain’s budget was also noted.
Reed Travel Exhibitions Director World Travel Market Simon Press, said: “It was fitting that the last Meridian Club Think Tank of 2012 should focus on the Olympics. It is great for UK tourism that a global audience witnessed the success and that there is a positive momentum for tourism.
“While APD is often the focus of industry complaints, VAT rates on the hospitality industry and visa restrictions are also holding UK inbound industry back, reveals the WTM Think Tank.”
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