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VisitBritain: Finance

Volume 492: debated on Tuesday 12 May 2009

To ask the Secretary of State for Culture, Media and Sport if he will make an estimate of the effect on (a) the British economy and (b) Exchequer revenues which would arise from an increase in (i) £10 million, (ii) £20 million and (iii) £50 million to the planned VisitBritain budget in each of the next five years. (272532)

VisitBritain’s grant in aid for the period 2011 to 2014 will be considered in due course. An increase of £10 million or £20 million over and above their current baseline funding would be deployed on above the line marketing activity. VisitBritain and Visit England would also seek to achieve 50 per cent. match funding from industry partners in line with such increases.

The additional visitor spend and tax revenue generated by such investment would significantly depend on the economic situation during the next five years and its impact on global airline traffic. VisitBritain and Visit England would currently expect to spend an increase of £50 million in each of the next five years not only on above the line marketing activity, but also on brand building and the development of new markets.

Again, the benefits would be influenced by economic developments in the wider economy. More detailed analysis and a larger planning exercise would be required to calculate the benefits over this period. In preparing for the next Spending Round, the Department will consider with VisitBritain a range of scenarios examining the economic impact of each.