Staycations; They’re so last year! Or are they?

Thomas Cook are claiming that the surge in UK holiday sales to British consumers in 2011 is now history. They claim that the cost of a UK holiday cost is the highest in Europe and that the discounts the Company are offering on foreign destinations will prove to be irresistible.  We beg to differ for the following reasons;

• Comparable spending power. Whilst the Euro remains strong the relative cost of dining out is just as high as the UK.
• Higher travel costs. Tempting savings being offered on villa accommodation have to be offset against the charges for airport parking, car hire and flight surcharges/taxes.
• Logistics. The reduction in disposable incomes can be managed by taking more frequent shorter breaks for the same spend as a 2 week holiday. It is much easier to do this within the UK.
• Travelling time.  Having to arrive at an airport 2 hours prior to check-in is no joy. Nor too is languishing in a stationary queue for the security check. Travelling to Devon and Cornwall on the M5 on a Saturday afternoon in August can, admittedly, be slow but at least you have the option of leaving home at the crack of dawn to beat any congestion.

From our various conversations within the sector, bookings are expected to come in very late in the day. We anticipate that the  demand for accommodation will hold up to 2011 levels but the average spend on eating out and on local attractions will be squeezed. The greatest impact of this trend will be felt by larger holiday parks with restaurants, shops and pay as you use leisure facilities.

Holiday Parks Industry Relieved by Governement Decision on Caravan Tax

The Coalition Governement has revised its budget proposals which originally suggested introducing 20%VAT on the sale of static caravans from Ocotber.  Instead, a new reduced 5% rate is to be introduced from April 2013.

Michael Paul, leisure property consultant and managing director of leisure property consultancy business MPC said of the tax ‘The proposed rise in VAT from 0% to 20% would have been the final straw for many leisure businesses, and likely to prove false economy for the government.

The nature of the Holiday parks is such that the industry is already seasonal.  In many parts of Britain the local holiday park is the major employer  in our more fragile rural and often cash strapped coastal communities and its customers are essential to sustaining the local economy.  Add to this the challenges of dealing with managed retreat in coastal areas and many would have been forced to closed and jobs lost as a result.  The uggestion to reduce this ti 5%is more realistic and should be easier to bear.’

Ros Pritchard OBE, Director General BH&HPA said of the developments: ‘The industry is very grateful to the MP’s who spoke up and supported their constituents’.

The finance Act 2012 containing the new caravan VAT measures received Royal Assent on July 17th, so that from April 6th 2013:

1.The sale of caravans which conform to BS 3632 will be zero rated for VAT (0%)
2.The sale of touring caravans (less than 7m in length) will be standard rated for VAT (20%)
3.The sale of other caravans will attract the resuced rate (5%)
This means that the 5% VAT will apply to the sale of caravans which do not conform to BS 3632 and are not touring caravans.

Calling All Silver Surfers

Have you always wanted to have a go at surfing? You’re never too old to try and why should young folk have all the fun? Thrown down the gauntlet and get your wetsuit on.

Check out Falmouth & Porthtowan Surf School at Porthtowan on the North Coast of Cornwall. The village lies between St Ives and Newquay and boasts a Blue Flag Beach, only one of five awarded in the County. The owner of the School Spencer Webb is in his late 40’s and now that he’s approaching his half century landmark he’s keen to attract an older age of pupil. To avoid any embarrassment or intimidation from having to mix and mingle with the younger hedonistic set why not club together with your “old mates” and book a 2 hour session for your group alone. Courses are run all year round. Prices are from £25 for a 2 hour lesson or £40 for 2 sessions. Discounts are available for groups of 10 surfers or more. The price includes tuition and wet suit and board hire.

It’s far more fun than surfing the net!