BRITISH TOURIST AUTHORITY TRADING AS VISITBRITAIN ...

VisitBritain and VisitEngland
Annual report and financial statements for the year ended 31 st March 2010
8. RESULTS FOR THE YEAR AND OTHER FINANCIAL INFORMATION
Financial Policy
During the period covered by these accounts, VisitBritain was funded primarily by grant-in-aid from DCMS under the provisions of the Act.
Following the Government's objectives, VisitBritain seeks to ensure that optimum use is made of all resources during the financial
year and so far as is consistent with its objectives, seeks to maximise non-Exchequer resources generated through close working
partnerships with the private sector and commercial activities.
In October 2007, DCMS announced the result of the Comprehensive Spending Review, which reduced VisitBritain’s grant-in-aid
(GIA) from £50.65m (2007/08) to £49.9m (2008/09), £47.2m (2009/10) and £40.9m (2010/11). At the same time the Secretary of
State announced a review of British tourism. The results of the British Tourism Framework Review are reflected in VisitBritain and
VisitEngland’s priorities for 2009/10.
In December 2009, the lease of VisitBritain’s head office in Hammersmith expired and the organisation moved in October 2009 to a
Crown Property at 1 Palace Street, London, SW1 with the right to occupy the premises for nine years under a Memorandum of
Terms of Occupation signed between DCMS and the Department for International Development.
Income
To assist with the costs of the move and continuing restructuring, DCMS provided VisitBritain with an additional £1.8m in funding.
Grant-in-aid amounts are taken directly to reserves and do not appear in the income and expenditure account.
Group income from non-government funded activities marginally decreased in 2009/10 (see note 6 & 7) mainly due to decrease in
partnership funding and other operating income. Some of the highlights are:-
Income from commercial activities increased due to the continuing growth of the online retail activities worldwide.
Other operating income reduced as VB overseas offices stopped providing agency model services to strategic partners.
Income generated from Quality in Tourism from administering the Quality Assessment Schemes rose due to an increase in
membership.
Partnership / Marketing income decreased as major value campaigns in Spring 2009 achieved industry involvement
through ‘in kind’ support. Reduction in GIA is also another factor for reduced partnership funding.
Expenditure
In 2009/10 VisitBritain incurred £1.197m costs for re-organisation, the majority of which is related to employee costs, which is shown
separately as exceptional item in the income and expenditure statements (see note 11). The other main operating cost impacts
were:-
Weak sterling values resulted in both currency losses as well as increased overseas infrastructure costs. This is also one
of the main reasons that staff costs in 2009/10 have not decreased proportionately with head count reduction.
Move costs from Thames Tower to Palace Street
Marketing expenditure decreased in the year as activity was planned to help manage exceptional costs in respect of
reorganisation. VisitBritain launched major campaigns promoting Britain as a value destination at the start of 2009/10
financial year
Publishing costs reduced following outsourcing of major activity
Commercial and quality cost of sales increased respectively in line with income
7