Tourism representatives are stepping up their campaign for the government to cut VAT for the industry.

They say research shows a VAT reduction would not only boost the domestic trade but help decrease the deficit.

Nationally, the Cut Tourism VAT campaign is led by the Bourne Leisure Group, Poole-based attractions company Merlin Entertainments Group, the British Hospitality Association and the British Association of Leisure Parks, Piers and Attractions.

Tourism Constituency Day in March will encourage MPs to learn more about tourism in their area.

Des Simmons, chairman of Bournemouth Tourism Management Board and managing director of Bournecoast Holiday Agents, said: “It is essential for our MPs to fully understand the impact of tourism on our economy.

“Only then can they make informed decisions about subjects like tourism VAT reduction.”

Campaigners argue the domestic tourism industry is made less competitive by lower VAT rates abroad.

Research commissioned for the campaign suggests that the UK’s balance of trade would improve by £20.1bn if VAT was reduced from 20 per cent to five per cent on the industry, improving the UK’s trade deficit, which remains at its highest level since 2010.

Mr Simmons said: “Many factors – such as the weather, strong pound and cheap flights – push people into holiday abroad, and that’s money lost from the domestic tourism market, which is hugely important in supporting regional economies.

“High VAT makes it harder for the UK to compete with Europe. Current government policy does not incentivise people to holidaying in the UK.

“VAT is also a fixed tax, paid irrespective of earnings, so it hits those on lower incomes hardest.

“We need to support all parts of society and, ultimately, there’s a huge benefit in doing so.”