WTM update: overtourism, Brexit and London’s tourism tax debate

WTM update: overtourism, Brexit and London’s tourism tax debate

LONDON — This year’s violent protests against overtourism, with slogans such as ‘tourists go home’ and ‘tourists are terrorists’, have been a wake-up call, said UNWTO Secretary General Taleb Rifai in an address at the 2017 World Travel Market, taking place this week in London.

“We have to make decisions now,” warned Rifai. “Jobs and charity are not enough – we need to diversify visitors’ activities, reduce seasonality and raise awareness of less busy destinations.”

He added: “We cannot continue to build five-star hotels in three-star communities.”

The annual UNWTO and WTM Ministers Summit debated strategies to cope with overtourism, which is threatening the tourism trade in destinations such as Barcelona, Venice and Amsterdam.

Ministers also met industry leaders at WTM London’s first destination investment event, supported by UNWTO.

Called IHIF at WTM, it brought together the leadership of the International Hotel Investment Forum and WTM London’s expertise to create an exclusive platform for ministers and investors in travel destination development.

Keith Evans, Vice President Hotels for Starwood Capital, highlighted Greece’s potential, saying: “There’s a good strong fundamental tour infrastructure; Greece is setting itself up as a market that has an interesting few years ahead.”

Henri Wilmes, VP Hotel Acquisitions for London and Regional investors, said Mexico is another destination that investors are watching with interest.

“Mexico has done very well in positioning the country in terms of supply,” he told ministers and delegates.

“It’s amazing what this country has to offer. It has provided the necessary infrastructure, such as airports – that is vital for investment.”

Another hot topic at WTM 2017 is the possibility of a tourism tax in London. Earlier this year London Mayor Sadiq Khan said he supported the introduction of a tourist tax pegged at £2.50 per night on all hotel stays, adding up to £100 million for the city annually.

Ufi Ibrahim, Chief Executive of the British Hospitality Association, said a tourism tax would penalize UK visitors most – and the industry is already concerned about the burden of business rates and VAT.

Tom Jenkins, Chief Executive of Etoa, the European tourism association, added: “No city imposes a tourism tax unless it is absolutely desperate.”

WTM 2017 delegates were also talking about Brexit, which topped the agenda on the opening day of WTM.

Fears about the impact of a ‘no-deal’ Brexit on the travel trade dominated WTM debates.

The European Parliament’s Brexit negotiator, Guy Verhofstadt MEP, told industry bosses that a ‘no-deal’ outcome was the worst-case scenario for travel and other sectors.

There’s the possibility of UK citizens being able to apply for EU citizenship after Brexit. British Prime Minister Theresa May that there should be a transition period so there is no disruption to the economy.

A ‘no-deal’ Brexit would also be the worst-case scenario for the travel budgets of UK consumers, however inbound operators are reaping benefits from the Brexit effect, thanks to the weak pound.

Travel Week Logo






Get travel news right to your inbox!