The chief executive of The British Association of Leisure Parks, Piers and Attractions (BALPPA), Colin Dawson, has called for urgent help from the government in order to clarify its position on putting Britain’s ‘tourism tax’ on an equal tax level as its European rivals.
BALPPA claims that if the chancellor, Gordon Brown, were to reduce VAT on admissions revenue to British attractions, it would greatly reduce the strong competition that these attractions face from their European competitors, such as Europa Park in Germany and Disneyland Paris.
A Touche Ross survey showed that a reduction in the British tax, which currently stands at the standard 17.5 per cent VAT and is levied regardless, would have no negative tax implications.
The competition is particularly bad for those attractions situated on the south coast of England – due partly to the ease with which the British can travel via Eurostar to rival French attractions.
In France, attractions enjoy a level of taxation of just 6 per cent on admissions and 5.5 per cent on meals.
“We’re continuing to try and keep the pressure up on the government and to equalise the situation with regards to VAT,” said Dawson.
Trade associations like BALPPA have to act on behalf of their members. We’re continually being hounded in this country to adopt European legislation and this is one issue of European harmonisation that the British government has to resolve – especially due to the nearness of our competitors.”
He continued: “We have to keep banging on the door until the government shows it means what it says regarding having an interest in tourism. So come on, show us the way!” Details: www.balppa.org