The new boss of Alton Towers-owner Merlin Entertainments Ltd. has urged the UK government to bring back a tax cut for tourists and encourage more high-spending visitors to the country.
Scott O’Neil, who was made chief executive officer of the theme park operator in November last year, said the UK has a “competitive disadvantage” to European rivals. He wants ministers to agree to a permanent reduction in VAT for the tourism sector.
“As the full Asian recovery comes back into the fold and we start seeing Asian consumers back into Europe, wouldn’t it be a good time to give a more level playing field?” he said in an interview.
“We want to make sure if you’re going on a long-stay trip with your family, that the first place you think of is London,” he added. “Part of that is dropping the additional VAT that puts that disadvantage.”
Merlin has five attractions in the UK capital, including the London Eye and Madame Tussauds.
O’Neil, 53, joins a chorus of business leaders demanding measures to encourage tourism. Burberry Group Plc Chairman Gerry Murphy said that the UK had scored a “spectacular own goal” in removing a tax break for overseas visitors. Murphy said at Rishi Sunak’s Business Connect event on April 24 that the “perverse” move to withdraw a VAT rebate for visitors had “made the UK the least attractive shopping destination in Europe”.
Read More: UK Luxury Brands Urge Government to Bring Back Tax-Free Shopping
Roller-coaster Ride
O’Neil spoke to Bloomberg as Merlin prepared to launch a new £17 million ($21 million) Jumanji ride at its Chessington World of Adventures Resort, southwest of London. While Jumanji is a tie-up with Sony Pictures, O’Neil opened the door to future rides being named with the aid of AI.
“When you’re naming roller-coasters or building theme parks, AI is a pretty incredible tool calling and pulling what’s being done,” he said.
“It doesn’t give you the answer, but it might give you five to choose from,” he said. “You can literally type in the description of the roller-coaster, and say ‘what would be a great name for this roller-coaster’.” AI was also helping Merlin to research new markets to enter, or companies to acquire.
He pointed toward a recent event organized by the private equity firm Blackstone in New York for CEOs of its portfolio companies. Attendees discussed ChatGPT. “Their view was, if you don’t have an AI strategy, it is something you should be looking at right now,” O’Neil said.
American Dream
Merlin is yet to release full-year figures for last year. The nine months to Sept. 24, 2022, saw 43.1 million visitors globally, accounting for £1.6 billion in revenues. That compares with £1.3 billion for all of 2021, from 35.2 million visitors.
O’Neil said Merlin had big expansion plans in US cities such as Las Vegas and New York, using central London as a model. China, where Merlin is building three Lego Land Parks and has 12 attractions, would expand, with Merlin’s existing footprint “just the start” of its plans.
Merlin, which was taken private by Blackstone, KIRKBI A/S and CPPIB in 2019, is among the firms fighting for a share of consumer spending at a time when families are under pressure from rising prices. He said consumers were visiting less often, but spending more each time. “So if they went to five attractions over the course of the year, they’ll pick four and spend more,” he said.
(Corrects spelling of O’Neil in deck headline and ChatGPT in deck headline and ninth paragraph)