Heavy taxes are stifling UK tourism, says Haven caravan parks boss

The boss of the company behind Haven caravan parks and Warner hotels has said heavy taxes are stifling tourism in the UK.

High rates of VAT mean UK businesses cannot grow at the same rate as their European rivals, according to Bourne Leisure boss Paul Flaum. Tourist spots in the UK are trying to offer affordable prices to cash-strapped customers but struggle due to the UK’s 20 per cent VAT rate.

The Government is effectively handing a ‘competitive advantage’ to Europe where rates are much lower, such as 10 per cent in Spain, Flaum told BBC Radio 4’s Today programme.

Without such ‘crazy’ taxation levels, more Britons would holiday at home rather than going abroad which would ‘put our industry into significant growth’. 

This would be a ‘win win’ as firms could invest more in jobs and communities including the ‘levelling up’ regions.

Flaum – whose business consists of 37 caravan holiday parks and 14 hotels including Studley Castle in Warwickshire – said 2023 was a ‘fantastic year’ for Bourne Leisure.