TOURISM minister Dr Kim Howells, pictured, has launched a major report on e-tourism which investigates how British tourism firms are using new technology to boost their business.

One of the businesses which has collaborated in the report is Chepstow-based business, Foxes Reach self-catering accommodation.

Speaking at the London Butterfly House at Syon Park in west London, Dr Howells, said: "This report demonstrates why e-commerce is crucial to the future of tourism businesses throughout the country.

Now is the time for industry to grab hold of new technology and the benefits it brings, such as improved efficiency, increased profits and competitive advantage in a tough market."

The e-commerce study was carried out by accountants Pricewaterhouse-Coopers and the DTI-led UK online for business.

It examines the use of information and communication technologies (ICT) by accommodation providers and attraction operators.

The report assesses new opportunities for tourism created by the use of e-commerce.

It analyses the impact on competition and supply chains and looks ahead to future developments within the tourism industry.

It looks at the need for tourism businesses to understand the importance of e-commerce and to adopt new ways of working if they are to make more effective use of their online activity.

The report makes a number of recommendations, including the fact that firms should integrate their e-commerce strategies into their business plans, rather than viewing technology as an 'add-on'.

It also urges that technology systems should be integrated, enabling real-time online booking and payment.

Only 16 per cent of the firms interviewed attempted any kind of "customer relationship management" based on data collected from their website.

Following on from the report a joint industry and government action plan has been drawn up.

A "Go for IT" campaign will be extended, providing advice to small and micro tourism businesses.

To order the Go For IT information pack, CD-ROM and video call 0845 715 2000 or go to www.ukonlineforbusiness.gov.uk/tourism

Dr Howells said: "The government is committed to helping the tourism industry make the most of e-business. We have established a network of support to help businesses get on line.

"Combine that with a product perfectly suited to e-commerce and you have a great opportunity on your hands."