The Government's policies towards the tourism industry show "a sad lack of vision", according to the chief executive of the British Hospitality Association.
Speaking at the launch of the BHA's annual report, Bob Cotton said investment in new and refurbished hotel facilities has been running at £5b a year and must continue to do so if UK tourism is to compete internationally.
Cotton said the failure to reinstate hotel buildings allowance, or improve the capital allowances regime, with the reduction of marketing support for VisitBritain ahead of the 2012 Olympics showed "a sad lack of vision, which will have long-term consequences".
"Just when we need the allowances the most, the Government chooses to abandon them," he added. "This does not make sense."
By Chris Druce
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