Speaking at the BHA Annual Conference, Varney said: “The general election campaign trail photos taken with the construction, high tech and manufacturing sectors gave us a clear picture of what the Prime Minster and Chancellor consider to be proper jobs in the UK. A view reinforced at the Conservative budget briefing in March where a junior minister commented that we ‘don’t want more Costa Coffee jobs.
“But jobs in the hospitality and tourism sector are proper jobs and represent one third of the two million jobs created by the last Government. Without them youth unemployment would be catastrophic and the welfare bill even higher. Without them there would be no entry level to fulfilling careers for skilled and unskilled, qualified and unqualified workers alike. Now more than ever we must make the case to Government on the value and importance of our industry to the UK economy.”
Another keynote speaker, Boris Johnson, Mayor of London agreed, saying: “We should be proud of the jobs that the hospitality and tourism sector is creating. These are not dead jobs but stepping stones and rungs on the ladder for thousands of people. The culture of hospitality is changing the atmosphere and the culture of work here in London. We are the hospitality capital of the world. London is the most visited city in the world for the second year running and we expect 18.8 million visitors this year. London generates over £12 bn for the UK economy.”
Tracey Crouch, the new Under-Secretary of State for Sport, Tourism and Heritage, disagreed with Mr Varney’s assessment. In her address she said: “Government does value tourism and takes it incredibly seriously.”
And she added: “Two people, myself and the Secretary of State for Sport, Tourism and Heritage, John Whittingdale, were until recently members of the Tourism Select Committee which produced a report calling for Government to consider carefully reductions in VAT and air passenger duty. We will be in the unusual position of responding to our own report – so let’s see what happens now.”
The Tourism Minister also urged the industry to make the most of forthcoming Rugby World Cup. “This is a £1 bn opportunity and can leave a tourism legacy as big as the Olympics’.”
Cutting VAT on tourism was a running theme of the conference, and Bourne Leisure Director, Dermot King, whose company owns Butlin’s, urged the Government to listen to the arguments of the CutTourismVAT campaign. “UK tourism suffers from a VAT rate that is almost twice the European average.”
On the question of Britain’s possible exit from the European Union following the planned referendum, the Mayor said he thought it would make no difference to UK tourist numbers.
But Peter Gowers, CEO of Travelodge, struck a more concerned note. “There is a clear possibility of more restrictions being placed on people entering the country on holiday, making the entry process harder for many tourists. Unlike the Scottish referendum, the hospitality industry should have a strong voice on this issue, one way or another.”
In a session on consumer confidence, CBI economist Andrew Sentence said this should remain steady for some time. Mike Saul, Barclay’s Head of Hospitality and Leisure, said “Restaurants are benefiting from this uplift, which is generating a whole host of new restaurants and concepts.”
The potential for strong further growth was identified by Alastair Storey, Chairman and Chief Executive of WSH, who pointed out: “Tourism is 10% of European Union GDP; in the Uk it’s 8%. So that means we’ve a 25% headroom growth opportunity.”