Mr Purnell has asked VisitBritain to conduct a review of how best to maximise the impact of DCMS tourism funding to market Britain. The tourism industry has become increasingly successful in recent years and has seen record visitor numbers. VisitBritain has recently undergone significant modernisation, with investment in new technologies and digital marketing. To maintain this growth, continued innovation will be essential.

In the context of the review and a tight Government spending round, DCMS resource funding for tourism will be reduced over the next three years – from £55.1 million this financial year (2007-08), to £53.0 million in 2008-09, £50.4 million in 2009 –10 and £45.8 million in 2010 –11. 

This follows a doubling of central Government cash provision for the support of the tourism industry since the late 1990s. Centrally, regionally and locally, United Kingdom taxpayers are providing around £350 million annual investment in the visitor economy.  The reduction also reflects the Government’s decision to target more funding directly at supporting our infrastructure and cultural institutions, which are a large part of this country’s draw for visitors.

Mr Purnell said:

“The tourism industry is vitally important, injecting £85 billion a year into the UK economy and employing a remarkable1.4 million people. It is testament to the quality of what Britain has to offer that this success has been achieved in an increasingly competitive market place.

“VisitBritain will lead a strategic review looking at how we can maintain this success through continued innovation. VisitBritain has already delivered well in its lead role marketing our tourism sector through its global network. This review will provide an opportunity for them to take an increasingly strategic position, focusing on the priorities for British tourism and acting as a catalyst for other agencies.

“To ensure value for money, we need better coordination of the resources and capabilities that exist in the tourism industry. Building on relationships with public and private sector partners will help Visit Britain lead this shift and maximise the impact of the great efforts being made by our nations and regions, and by individual local authorities. It will also help deliver the tourism legacy of the 2012 Olympic Games.

“I recognise VisitBritain's key role in delivering the 2012 tourism legacy and will review available resources for VisitBritain to work with the private sector as we get closer to the 2012 Games’”

Christopher Rodrigues, Chairman of VisitBritain, said:

" Whilst this is a challenging settlement, we welcome the opportunity to lead the review of how best we fulfil our remit to market Britain and England within the framework of devolved responsibility and in the current funding context. We remain committed to delivering on the strategy to maximise the UK-wide tourism benefits of the 2012 Olympic Games, which is a once-in-a-lifetime opportunity for tourism in the UK."

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Notes to Editors

1. DCMS funding includes the near cash resource grant for VisitBritain, the national tourism body as well as to Regional Development Agencies and the Greater London Authority to support tourism.

2. The total breaks down as:

3. DCMS funding is a small part of the overall Government funding for the industry. The total for 2006 / 07 was:

4. The funding announcement follows the Comprehensive Spending Review. The settlement for the arts, museums and galleries has already been announced (see DCMS press notice 117/07)