British luxury brands launch image campaign

A group of high-profile British luxury goods companies including Burberry, Harrods and Fortnum & Mason will this week launch a major campaign aimed at boosting the image of the luxury goods sector and increasing the spend of overseas visitors to the UK. The "Great Britain: Great Brands" campaign will call for increased government funding to support the industry, the establishment of a "luxury goods" task force and an easing of visa restrictions for visitors from emerging markets such as India and China.

The campaign is being organised by Walpole, the luxury goods group that represents more than 70 British luxury brands. It argues that Britain is losing out to locations such as Paris and Milan as a destination for high-spending tourists. With the London 2012 Olympics approaching, executives in the sector are concerned that potential sales will be lost.

They argue that the number of tourists visiting Britain annually has risen by 122 per cent to 29m since 1979, but tourist spending has increased by only 40 per cent to £13bn. What is more, tourists are making shorter visits.In 2004 British residents travelling overseas spent £2.30 overseas for every £1 spent by -visitors to Britain. Walpole wants this imbalance addressed. "We are potentially losing an industry that is worth £75bn a year. Do we want it to go down to £50bn or up to £75bn?" said Peter Lederer, the managing director of the Gleneagles hotel.

"Tourism forms a major component of our economy but it seems odd that they are not spending as they once did. Something needs to be done to fix it," said Mark Henderson, the managing director of Gieves & Hawkes, the tailor. Lord March, the owner of the Goodwood estate, which comprises car and horse race tracks and a golf course, said the UK luxury goods sector was "in danger" of seeing spending fall further unless there was more promotion overseas. "Great Britain: Great Brands" will call for the Government to reduce "restrictive" inbound visa requirements for tourists from markets such as India and China. Current rules stipulate that a visitor from these countries can zigzag most of mainland Europe on one visa, but needs a separate one to enter the UK.