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Cornwall Could Get Tourism VAT Cut

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12:35pm 30th July 2014

Thousands of new jobs could be created in Cornwall if we got a tourism tax break.

That is according to campaigners who say it would cut the price of attractions, hotels and holiday parks.

They reckon it would boost 'staycations'.

It is part of the reason holidays abroad turn out cheaper than holidaying in the UK.

Bosses reckon it could mean 25, 000 new businesses and 120, 000 new jobs across the South West.

We are one of the only places in Europe that doesn't do it.

Tony Townsend is from Retallack Resort and Spa near St Columb, he said: "They are saying it could cost £2 billion in lost revenue to the treasury, but in France they saved more than 18 thousand jobs and created a further 30 thousand, so can you imagine what it would do in the UK, it would give us a great shot.

"People are being able to go to attractions, and a lot are doing a great effort to attract them for more than one or two days, but what they need is that secondary spend to help pay for employees and of course further developments."

Lifton hotel owner Adam Fox Edwards is campaigning for it, he said: "Tourism is an enormously important part of the economy for Devon and Cornwall, VAT is levelled at 20 percent on all rooms and visitor attractions, everywhere else in Europe, bar the UK and Denmark, have reduced VAT to between five and ten percent on hotel rooms.

"If I sell five more rooms tonight, I need another housekeeper tomorrow to service those rooms, that's an extra shift, an extra employment locally, five rooms equals ten extra people staying in the hotel, that's another ten people having dinner, so it all means extra spend and extra income in the county."

Tim Jones is from the Devon and Cornwall Business Council, he said: "Most countries in Europe have done this and shown great job growth and regeneration to industries where they need to be competitive, the UK is now falling behind, it's now 138th out of 140 most competitive areas in the world.

"The way in which online bookings take place now, and how sensitive people are to price reductions, the expectation is that it could impact almost immediately, so next season's bookings could benefit."

12:35pm 30th July 2014

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