Yorkshire may lose millions in tourism funding

Laurie Whitwell

MILLIONS of pounds could be slashed from the Yorkshire economy under Government plans to change funding for tourism – proposals that would give a huge cash boost to London.

Experts predict that the region could lose more than 12m a year if the Department for Communities and Local Government goes ahead with changes that would put more emphasis on overseas visitors rather than day visitors – despite the fact that 85 per cent of all tourism visits are day trips.

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The switch would skew the results in favour of London because it is much more popular with foreign visitors than anywhere else in the country, accounting for around 50 per cent of all overseas tourists. As a result it could claim an extra 60m a year of public money,

The proposals, seen by the Yorkshire Post, raised serious doubts about the Government’s pre-election pledge to redress the North-South divide.

According to estimates, Leeds alone would lose out on 1.43m in Government funding under the new system. York would miss out on 1.35m, North Yorkshire would be deprived of 1.25m and Sheffield would lose 1.05m.

East Riding would also miss out on more than 1m while Barnsley, Rotherham, Doncaster, Wakefield, Kirklees, Bradford and Calderdale would all lose more than 500,000 each.

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Last night the proposals drew heavy fire from campaigners and business leaders who argue the move is not only unfair, but also sends the wrong message to councils in the region about their ability to benefit from an 86bn-a-year tourism industry.

The policy director of the Tourism Alliance, Kurt Janson, said: “This proposal isn’t equitable. It will distort what the impacts of tourism are.

“Day visitors are spread out across the UK, foreign visitors are concentrated on London – this formula is London-centric.”

At the moment grants are allocated on a complex formula that takes into account the numbers and types of tourists to regions and offers compensation, such as for extra wear and tear on roads.

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But as the method for collecting data on the numbers of day visitors is now considered out-dated, the Government has decided a new formula is required.

A consultation paper on the redistribution of tourism grants shows the Department intends to remove funding for day visitors, even though they account for the vast majority of tourism.

That would hugely favour London because it is much more popular with foreign visitors than anywhere else in the country – even though only three per cent of tourism in the country is from abroad. Experts argue the proposals would lead to a system with fundamental flaws.

“Just at a time when we need to be encouraging tourism to boost the economy, this would take away an incentive to be involved in tourism,” Mr Janson said.

A 12-week consultation period was completed this week.

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In a letter to the Department, the Tourism Alliance pointed out that VisitEngland was currently putting together an improved method for measuring the number of day visitors and suggested that the Government stick with the current formula for a further year, and incorporate VisitEngland’s data collection method when it is finalised in 2012.

“We hope they will see sense on the issue and listen to our advice,” Mr Janson said.

The chief executive of Leeds, York and North Yorkshire Chamber of Commerce, Gary Williamson, said: “Tourism is a major employer and creator of wealth in our region and in recent years the promotion of Yorkshire has delivered fantastic results.

“A business decision would be to build upon this success with extra investment or at least maintain what has been achieved.”

Any changes could be implemented as early as April.

A spokesman for the Department for Communities and Local Government said it would be making further announcements in due course.

Comment: Page 14.