Britain's place as top tourist destination 'threatened by lack of investment'

Britain risks slumping out of the top 10 global tourist destinations within five years, a senior industry leader warned yesterday.

Stephen Dowd, the chief executive of the British Incoming Tour Operators' Association, which represents businesses bringing overseas tourists to Britain, said ministers had failed to support tourism as a major industry.

The Government had consistently failed to invest money and support in tourism, despite the savage setbacks that the industry had suffered from the foot-and-mouth crisis, the 11 September attacks and now the war in Iraq, Mr Dowd said.

The war in Iraq could cut up to £2bn from tourism earnings this year, a fall of about 15 per cent, he said last week.

The Tourism Industry Emergency Response Group warned of "clear nervousness" in long-haul markets, although it remained confident about long-term prospects for the tourism industry. Senior industry figures are thought to be exploring the possibility of launching a personal appeal by Tony Blair to kick-start the American tourist trade when the war in Iraq has finished.

Visit Britain, the new organisations set up to market Britain at home and overseas, is also planning a summer media blitz to encourage Americans to travel to the UK. But ministers are not expected to increase funding for international marketing to overcome the effects of the war.

Mr Dowd said: "We are going to drop out of the top 10 in five years unless this Government tries to take tourism more seriously." He called for cuts in taxation on hotel rooms and other tourist-related sales, and warned that ministers were providing inadequate support to an industry which generates £12bn a year directly, and brings many billions more into the British economy. He said: "For every £1 the Government puts into tourism they will extract £1.40 in tax revenue."

Britain currently ranks sixth in the global league table for tourist destinations.

MOST POPULAR DESTINATIONS 2001

Country: Number of arrivals (millions)

1 France 76.5

2 Spain 49.5

3 US 45.5

4 Italy 39.0

5 China 33.2

6 UK 23.4

7 Russia 21.2

8 Mexico 19.8

9 Canada 19.7

10 Austria 18.2

Source: World Tourism Organisation 2001