Norfolk tourist attractions call for government to extend VAT cut

The VAT tax for tourism and hospitality businesses was cut to 12.5pc from the normal rate of 20pc last year, but the change is due to end on March 31.

Merlin Entertainment, which owns tourist attractions across the UK including the Sea Life centres in Hunstanton and Great Yarmouth, is calling for the cut to become permanent.

"Now more than ever we recognise the need to give memorable and uplifting experiences to families who have been impacted over the past two years," said Nathan Barnett, general manager of Yarmouth's Sea Life centre.

“We are very much of the view that if the VAT rate reverts to 20pc in April it will have a significant adverse impact on the tourism sector at a time when it is finally starting to turn a corner.

“We firmly believe that keeping the current lower rate of VAT in place will help drive demand, create jobs and give the tourism sector a strong boost on the road to a long-term, sustainable recovery.”

Nigel Croasdale, general manager of Hunstanton's Sea Life centre, added: “As we continue to recover from the pandemic, our focus remains on making up for the significant losses incurred over the past two years.

“Although UK visitor attractions benefitted from domestic tourism during 2021, there continues to be a dearth of overseas visitors which continues to have a significant adverse impact on overall numbers and revenue for the sector as a whole.

“In addition, the recovery was significantly slowed over the winter period due to the rise of the Omicron variant and the Plan B restrictions. In light of this, we continue to support the collective view of our industry that a lower rate of VAT needs to remain in place for tourism.”

Andrew Fuller, sales and marketing manager of Pleasurewood Hills (Image: Pleasurewood Hills)

Andrew Fuller, sales and marketing manager of Pleasurewood Hills, near Lowestoft, said he would "welcome" an extension to the VAT cut, especially for independent firms as many have been faced the toughest time during the pandemic.

He said: "We've all been affected by the pandemic.

"I think it's been a case of the different restrictions lifting that has hit many of us - pubs, restaurants, hotels - pretty hard. Everyone has felt the pinch.

"The extension of the VAT cut would be welcomed."

He added: "The money would help with our outgoings. It would be reinvested in the park."

The pandemic has had a huge impact on the tourism sector across Norfolk.

An Economic Impact of Tourism 2020 report found that the amount of money generated by day trips to the region fell by 55pc in 2020 compared to 2019. The money from overnight trips fell by 62pc during this same period.

A financial support package from the government has helped many attractions survive, but with the sector only starting make a financial recovery, some are considering increasing their prices to help meet rising costs.

Claudia Roberts, CEO at the Zoological Society of East Anglia (Image: © 2017 Simply C Photography)

Claudia Roberts, CEO at the Zoological Society of East Anglia, which runs Banham Zoo and Africa Alive, said: “It is evident that after a global pandemic the increase in costs on businesses, such as an end to the VAT cut on the tourism and hospitality from March 31, are likely to occur.

"We accept that the increase in costs is the payback price for the UK’s government support mechanisms, furlough and business grants, during the pandemic. ZSEA certainly wouldn’t have survived without the support of the Zoo Animal Fund as a result of long closures in 2020 and 2021.

“As a charity, we remain fiscally prudent and continue to rebuild stronger and leaner. This change will, however, have an impact on our pricing in order for us to continue caring for our animals in our collections and supporting our charitable objectives in conservation, education and community, to ensure our long-term future.”