A RADICAL shake-up of tourism could take place after it was agreed services should be reorganised as a commercial organisation at arm’s length from the council.

A unanimous vote by members of the city’s Tourism Advisory Board (TAB) was made amid the threat of massive funding cuts and dissatisfaction with the current model.

A confidential report which made the recommendation found there was a “lack of business influence in tourism services”, decision-making was “slow” and tourism marketing struggled to be “innovative and commercial”.

Tourism services are currently run by Brighton and Hove City Council under VisitBrighton, a 480-strong member organisation, which relies on two thirds of its funding from the taxpayer.

The small city “punches above its weight”, supporting 20,000 jobs. Some 11 million visits were made in 2013 with £831 million spent at local businesses.

VisitBrighton was seen as “broadly effective” with “considerable success” in the conference market and attracting high-profile events to the city.

But Brighton and Hove was seen by consultants to the report as “easy sell” with internationally recognised attractions such as the Royal Pavilion and Palace Pier. Previous reports have found retaining services within the council was “too risky and liable to lead to a decline in services”.

And the latest review, conducted by Nairne with Rubicon Regeneration, found operating within the local authority makes VisitBrighton “slow to respond to change” and constrained in adopting a more “aggressive approach” to revenue generation and cost efficiencies.

Contributors included city council and VisitBrighton bosses and leaders of major tourist bodies and attractions, including The Grand hotel, Pride, Fringe and i360.

An “unhealthy dynamic” has taken hold between the council and tourism leaders, where “the level of mutual trust seems low”, the report found.

It warned: “Given the significance of tourism to the city’s economy, the city council needs to think carefully about its future funding decisions in relation to tourism services.

“The scale of savings that need to be made means it seems unlikely that the city council will be able to sustain the current level of investment over the next five years.”

It concluded it was “difficult for VisitBrighton to operate effectively whilst it remains within the city council” and proposed an arm’s length destination management organisation (DMO) set up as a community interest company (CIC) which would use profits and assets for public benefit.

The local authority would continue to have a key role with a three-year funding commitment.

A board of directors would lead the new model with staff employed on incentive-based contracts.

The DMO would “focus ruthlessly on its core objectives”, clear accountability and have the freedom to operate on a more commercial basis. A sub-committee of the TAB will now begin looking at the future structure with the council and political parties.

Olivia Reid, vice-chairwoman of the TAB, said: “It is important to state this is the united decision of TAB members only at this stage, we now need talk to the political parties and other groups within the council.

“The next stage is to look at options, financial implications and clear objectives. It will take time to move forward but we are hoping that whatever form the tourism organisation takes it will offer a real partnership to all members, efficiency, flexibility and a greater sustainable future.”

Councillor Geoffrey Bowden, chairman of the economic, development and culture committee, said: “Visit Brighton does a fantastic job for the size of the operation. But if we want to keep it going we’ve got to find different ways of funding marketing.

“This is something we’ve got to explore – we ignore the advice coming from the TAB at our peril.”