The chief executive of the British Hospitality Association (BHA), Bob Cotton, yesterday called on the government to realise that if it wants to encourage growth in the British tourism industry it must invest in it, not tax it.

Speaking to more than 800 association members at the BHA’s annual luncheon at the Royal Lancaster Hotel in London, Cotton slammed the possible introduction of a ‘bed tax’ for British hotels.

“There hardly seems to be a more inappropriate time to suggest introducing a further tax on accommodation users then at this time, when the country’s tourism trade deficit is at a record £20bn,” he said.

“A further tax – over and above 17.5 VAT – will only drive this deficit further into the red. It will deter overseas visitors from visiting this country and it will encourage more UK citizens to holiday abroad.”

“If we can learn anything from the past it is that you have to invest to encourage growth. Every one of our members understands this, and practices it. Our local and national government apparently does not.

“What local authorities should be doing is to invest in their own infrastructure to encourage more visitors – to have cleaner toilets open all year round, better car parking, and a more welcoming environment.”

Cotton also called for an increase in finding for tourism marketing body VisitBritain, which has not had its grant-in-aid raised from £35m in eight years.

The BHA annual luncheon and AGM also saw former chief executive of Hilton International. Sir David Michels, elected president of the association, succeeding Ramon Pajares who has held the post for the past six years.

Alan Britten, former chair of the English Tourist Board and chair of the committee harmonising Britain’s national hotel classification scheme; celebrity chef Brian Turner; and Michael Quinn, founder of the Ark Foundation, were all recognised in the BHA awards for outstanding service to the tourism and hospitality industry. Details: www.bha.org.uk