Tourism industry told to use Olympics as starting block for £100bn

[richard]

The tourism industry was given the task yesterday of using the London Olympics in 2012 as a catalyst to increase annual turnover by £25bn to at least £100bn.

The challenge was set by ministers in Downing Street in talks with leading figures from the tourism industry, including Hilton Group, Easyjet and Tussauds.

Tony Blair said staging the Olympics was a "once in an era opportunity for British tourism. Our job now is to ensure the whole country benefits in the run-up to and long beyond the games".

Representatives of the leisure and hospitality businesses at the talks agreed to sign a "Tourism 2012 charter" to commit the industry to driving up standards in 180,000 tourism businesses.

There are concerns that Britain does not offer good value for money for visitors compared with other big tourist destinations.

With ministers intent on raising the number of repeat visits, Tessa Jowell, culture secretary, said the industry needed to "improve the consistency of its quality, raise the level of skill and through imaginative marketing showcase Britain's heritage and its dynamic, 21st century cities".

Ken Livingstone, the London mayor, has backed down over plans to carry out a compulsory purchase order on Stratford City, a development site next to the games venue in east London. The London Development Agency said it had "safeguarded" the Olympics by striking a deal with the consortium behind the project.

The LDA had until yesterday threatened to put an order on the 170-acre plot because it included land vital for roads and parking.

It is understood the LDA will continue to dangle the threat of a CPO, whereby land is seized in return for compensation, over the consortium to ensure the scheme is not delayed.

The climbdown came amid fears the scheme could collapse because of the surprise move by the LDA. It was also thought that taxpayers would have to pay hundreds of millions of pounds in compensation for the land even if the scheme went ahead.

The Stratford City consortium includes Stanhope, the private group, the Reuben brothers and Multiplex and Westfield, the Australian property groups. Multiplex is understood to be seeking a buyer for its 25 per cent stake after losing money on the construction of Wembley stadium.


Source
Matthew Garrahanand Jim Pickard
ft.com