Industry hits back at minister's criticism

Leading industry figures have hit back at tourism minister Kim Howells's criticism of high prices and low wages in UK hotels by saying that Government policy is to blame.

Bob Cotton, chief executive of the British Hospitality Association, said: "The reasons for high prices are the direct result of Government policy. We have the second-highest level of VAT - 17.5% - in Europe, compared with 5.5% in France. The pound is 30% overvalued, particularly compared with European currencies, and we have the highest costs of petrol and transport in Europe."

The timing of the minister's comments (Caterer, 12 July, page 4) was seen as insensitive. Declan Swan, director of the Hospitality Training Foundation, said: "Look at how positive people are trying to make things in the face of foot-and-mouth and the state of the economy. What we should be doing is talking up the industry, not talking it down and making people demoralised."

A further concern was whether the minister had been properly briefed and advised. Swan said: "He needs to talk to the leaders of the industry. He needs to recognise that tourism is going to be the salvation of this country. My hope is he will receive that message."

Cotton said: "At a time when overseas visitor numbers are falling and the Government is investing £14.2m extra to attract foreign visitors, it does seem counterproductive that the tourism minister is effectively telling them not to come."

by Ben Walker ben.walker@rbi.co.uk

Source: Caterer & Hotelkeeper magazine, 19-25 July 2001