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The question of VAT on hotel accommodation was one of a barrage of questions to greet the panel of ministers and tourism chiefs at last week's Department of National Heritage (DNH) breakfast briefing.
Anthony Sell, chief executive of the British Tourist Authority, John East, chief executive of the English Tourist Board, Stephen Dorrell, Secretary of State for National Heritage and tourism minister Viscount Astor (pictured left to right), took the questions.
But despite calls from a number of delegates for a reduction in VAT, who cited this month's report by Touche Ross as proof it would boost tourism, Mr Dorrell said he did not see it as a viable option.
"The Treasury gets a huge range of people asking for VAT reductions for their sectors. I don't find it an attractive option to offer particular tax rates to particular sectors," he said. "Price is not the only factor in the success of the sector."
