Travel Should Be Thanked, Not Taxed

TaxesWith the world still moving from one economic crisis to the next and what appear to be no short or even medium term hope of the fundamentals changing, almost without exception, governments worldwide are becoming desperate to find ways of cutting spending and increasing revenues. Some of the their initiatives are long over due as well as some changes are for the better. Some however are ill conceived and are only going to have long term negative impacts of economies. This is especially true when it comes to the travel sector.

Those of us in the industry know well the incredible value and enjoyment that travel brings – the opportunity to discover all of the beauty, learning, meaning and fun that the world has to offer.  However what our governments often forget is that the travel industry is also responsible for millions of jobs, billions in investment, and trillions in revenues.

Travel - Rio Brazil

“Those of us in the industry know well the incredible value and enjoyment that travel brings…”

Sadly, the hard, quantitative, comprehensive value of our industry is not only being overlooked by government leaders – it is in fact being worked against. The travel industry has become an easy target for new government taxes. This because despite our size, we do not act with a collective voice and those who frequently are taxed are not local residents but the international traveller. This is shortsighted, as the impact is decreased demand.

Travellers in the UK and Euro-zone already know this painful reality all too well. The creation of new charges being applied onto travel such as APD (Air Passenger Duty), ETS (Emissions Trading Scheme), local room taxes and entry visas to name just a few of the most recent, are already acting as an increasing deterrent to travelers. Many travelers are either deciding to go elsewhere or finding they simply cannot afford to take the holiday they have always dreamt of.

Governments need to recognize that they cannot afford for travelers not to travel to their Country. It’s not about governments supporting a sector of the economy that promotes rest and play. It is about governments supporting an industry that keeps people working, keeps investors investing, and keeps visitors spending. Focus of government needs to shift. Industries that work to create jobs, investment, earnings and goodwill, need to be thanked, not taxed. Credit where it is due.

The Current & Anticipated Absurdity of UK Arrivals

London Olympics 2012In a matter of weeks, Great Britain is going to see an unprecedented wave of tourists lining up at immigration desks across the kingdom. Hundreds of thousands of tourists, each one excited to have their passport stamped so they can spend their time and money in London and the surroundings areas.

The first wave will come for the Diamond Jubilee, the second wave for the Olympic Games and Paralympics, and after that, the hoped for waves of tourism legacy.

Last month Heathrow already saw a 6% rise in capacity, pushing it beyond 70m passengers in a 12-month period for the first time in its history. Local Parliamentarians are warning that Heathrow may not be able to cope with the extra passengers. The consequence is that travellers will face endless lines, something I personally recently encountered, at border control.

Why? Because the UK has decided that the most important major events of 2012, if not the decade, do not warrant special treatment at Great Britain’s front door. A skeleton staff of immigration officials is adequate. The tourists can wait. Having personally been one of masses forced to wait almost two hours to get through immigration (a length of time longer than my actual flight’s flying time), the feeling of annoyance, is acute. I, like the hundreds waiting in line around me, could not help but think: “how are they going to do the Olympics?”

The immigration and tourism officials of one of the world’s foremost tourism destinations –a destination on top of wish lists of millions of travellers, and set to experience an economic impact of the Games alone is estimated at GBP 2 billion – needs to see just how unwelcoming they are looking, and acting.

How have they forgotten the fundamental of hospitality? This is not complicated – we learnt these lessons as children when taught about how to treat visitors to our homes: welcome your guests, make them feel at home, help them as much as you can, and do all you can to ensure they enjoy their visit. I hope they wake up before the damage is done and through their actions deterring tourists from returning.