Back from my early morning bike ride. It is a beautiful still and quiet September morning - noticeably - just a touch cooler. However my pleasure has been slightly tainted by exasperation. I am going to write this quick blog as a safety valve but I am not going to spend too much time on it - because I am a hedonist - especially on a day like today - ha ha!
Pre privatisation - British rail management strategy. Passenger numbers are falling - our revenue is dropping - we will have to put our prices up !
This has come to mind today because the Labour government has just announced they are giving local authorities/mayors the powers to levy a local tourist tax.
Tourism is the strategically and socially the most important industry on the Isle of Wight. It is crucially important both in terms of revenue and employment. Sadly however tourist numbers are down, tourist related businesses are struggling and the industry can no longer offer the job opportunities it once did. Consequently revenues flowing to the Isle of Wight County Council are down.
How does the IOWCC respond. They put up car parking fees everywhere. They charge cafes extra business rates if the place a few extra chairs outside. They squeeze the IOW Festival and similar events through licensing etc. They are now hitting second home owners through penal council tax and this is having negative consequences for the Island.
The next thing is we are going to tax every tourist that stays on the Island. British rail thinking. This can only reduce tourist numbers further.
Ferry costs are high (and the government have just increased ferry fares further by applying a green fuel levy on the ferry companies). Tourist businesses have been massively hit by the jobs tax (employer Nat Ins) and tax generally. Mix in utility cost increases ! So many hospitality business are struggling or are no longer viable. Business owners cannot afford to invest in their businesses - improve them - even barely maintain them - so the tourist offer is looking increasingly modest and prices are high for families especially.
Advocates of the tax argue the following : Why should locals pay for everything when tourists use them ? The answer to that is they don't. Tourism is a life blood that contributes massively to the local coffers already which is why we need more tourists. They say the extra money is needed from the tourists to invest in the area. If only this were true - but the public sector waste money on vanity projects in the meantime local businesses fail under that weight of taxation. This tax will harm hotel businesses across the country. Final point here - they argue places abroad charge a tax so why shouldn't we? One cited Venice. The difference is Venice is full. The IOW and many other tourist areas are not - they are already struggling.
But regardless the IOWCC will apply a TOURIST TAX - which can only have one effect. It will reduce tourism further - and more and more businesses will struggle and revenues and job opportunities will fall further. The IOWCC will have responsibility to pick up much of the social impact that result from failure ie deprivation - social problems and decline.
And of course there will another band of bureaucracy - red tape - a bigger public sector to collect and administer the tax - to check businesses are declaring enough. More civil servants working from home etc etc. Sickening.
It is all shortsighted madness. The IOW County Council need to recalibrate. The thinking needs to turn 180 degrees and to think about how the Island can attract tourists back and the answer to that will definitely not be to tax them more. This tax sends out the wrong message ie tourists are not really wanted. Many people now will be thinking how can they avoid paying the tax out of principal. I certainly will.
(Just as an aside - the cash strapped Labour government are likely in time to give local government less money because they have given them tax raising powers to compensate.)
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