The Government underestimates the tourism industry at its peril

Moreover, the WTTC believes there is still too much tension in Whitehall between policy makers focused on immigration and those who understand overzealous visa policies are putting off perfectly legitimate visitors who want to come here to spend their money in the boutiques of Bond Street and return home again.

The tourism industry may not offer ministers the same enticing photo opportunities as other sectors, such as car manufacturing, but with a global value of $7 trillion (£4.2 trillion), the Government ignores entreaties to ease the restrictions on tourist-based businesses at its peril.

As Harrods managing director Michael Ward pointed out to The Telegraph last Saturday, the UK does too little to make the tourist’s experience a pleasant one. By focusing on improving the experience at both ends of the journey – easing visa requirements and making the task of reclaiming VAT less of an ordeal – the Government could take on European competitors and beat them.

If the UK is open for business it needs to show it.

Sainsbury’s must beware the discounters

Justin King almost made it. After growing like-for-like sales for 36 consecutive quarters, Sainsbury’s tripped up in the final quarterly results to be presented by the long-standing chief executive.

He blamed tough comparatives and a late Easter for the fall, but the drop in sales underlines the growing pressure on Britain’s leading supermarkets.

They are being squeezed by the rise of the discounters, the growth in online shopping and the simple fact that they are opening fewer stores after covering the country over the past 20 years.

Given Mr King’s experience in the industry, his views are always worth listening to. He is one of the most articulate chief executives in the FTSE 100 and one of his main strengths as Sainsbury’s boss has been having his finger on the pulse of British families.

However, is he underestimating the threat posed by German discounters Aldi and Lidl?

Mr King said that the popularity of discounter retailers is nothing new and that they had a larger share of the market in the early 1990s, when KwikSave was operating.

On the face of it, Aldi and Lidl should barely be a threat to the “Big Four” supermarkets. The German discounters hold 7.5pc of the market, while Tesco, Asda, Sainsbury’s and Morrisons hold 75pc.

However, not only are they growing at 10 times the rate of the Big Four, but perceptions of Aldi and Lidl have changed dramatically.

The Telegraph is regularly bombarded with comments from readers praising the quality of the food and shopping experience at Aldi and Lidl. The simplicity of the German discounters has been welcomed by shoppers tired of complex promotions at Tesco, Asda, Sainsbury’s and Morrisons.

The change in perception towards Aldi and Lidl, from cheap and cheerful to just good value, is significant. As word gets out about the quality of their fresh food – through word of mouth or new advertising campaigns – their growth will continue.

Mr King leaves Sainsbury’s well-placed to challenge Aldi and Lidl. The quality and provenance of its branded food is seen as a better than its rivals. However, the company must use the weapons it has to slow the rise of the discounters and be careful to ensure it does not allow the price gap to widen.

Top tech IPOs are still heading to New York

London has emerged as the top destination so far this year for internet technology companies to float stock. However, look beyond the figures and league tables churned out by data companies and the City has missed out on some of the most eye-catching global deals that have headed almost exclusively to New York.

Chinese e-commerce giant Alibaba is the latest so-called “tech” listing to shun London in favour of the US, despite high hopes that the UK could offer a more enticing location. Alibaba is a “trophy” IPO for New York to capture, with the Asian giant trading more goods online than eBay and Amazon.com combined. Its decision to head stateside follows games maker King this year.

Of course, New York has historically always held the advantage in attracting tech IPOs. Although the Government is working hard to promote technology hubs in London, it is still a long way from Silicon Valley. Crucially, London does not have a dedicated tech exchange to compete with Nasdaq and efforts to set up the high-growth segment, which has lower free-float threshold requirements that allow founders to surrender less control, remain untested.

Nevertheless, London has done well to secure a steady flow of smaller listings, which are keeping the City’s army of advisers busy. The total amount of money raised by internet companies on the London stock market in the year to date has hit £844m, compared with Wall Street’s £375m, according to Dealogic.

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