Baroness Northover
My Lords, I, too, would like to thank my noble friend Lord Storey for securing this debate, and I pay tribute to all noble Lords for their contributions. Once again, noble Lords have demonstrated remarkable expertise. Mentally, we have travelled to Glastonbury, Liverpool, Northern Ireland, Fife, Aldeburgh, Buxton, Hyde Park and wider.
Noble Lords are right to emphasise the importance of both music and tourism. This morning, I see that the new inbound tourism figures from VisitBritain show that the tourism spend in Britain was 5% higher than in May last year, which is very encouraging. The ONS tourism satellite account shows that in 2009 tourism direct gross value added—and I asked my son, who does economics, what that meant—was £45 billion. Thus the tourism sector is approximately five times larger than the agricultural sector and about half the size of the construction sector. Further work by Deloitte suggests that, if the indirect economic effects of tourism are also included, gross value added could be as high as £115 billion. Domestic tourism is also hugely important, worth some 80% of tourism receipts.
Our rich culture marks us apart in the world, as the noble Baroness, Lady Liddell, and others have emphasised. Music from classical to rock is a crucial part of Britain’s tourism appeal, both in terms of attracting visitors to the UK and encouraging spend while they are here. It forms a major theme of the GREAT campaign, which is the Government’s most ambitious international marketing campaign ever, to which the noble Baroness referred.
The music, visual and performing arts industry is undoubtedly one of our most successful creative industries. Our artists’ share of global album sales in 2012 was the highest on record, and British acts have now claimed the world’s top-selling album for five of the past six years. The industry estimates that it generates over £4 billion every year for our economy and helps to keep 300,000 people in work.
We have heard how Liverpool produced the Beatles, Manchester Oasis and London more recently Adele. As we see, we remain very much at the forefront—and when our nation celebrates, we celebrate with live music. Some 1.4 million people applied for one of 10,000 tickets to attend the Queen’s Diamond Jubilee concert in 2012. My noble friends Lord Storey and Lord Clement-Jones and the noble Lord, Lord Aberdare, noted the Olympics and Paralympics. The BBC reported that the opening and closing ceremonies of London 2012, which were absolutely stunning, sparked a big surge in music sales worth a retail value of over £2 million.
We are a nation of music lovers and festival goers. In 2011, the O2 Arena sold more tickets than any other arena in the world, making it the most popular music venue for five years running. As my noble friends Lord Storey and Lord Clement-Jones noted, Glastonbury is the biggest music festival in the world in terms of attendance by day, and contributes over £100 million annually to the economy. Even in times of austerity, I note that this year Glastonbury sold out in less than two hours.
Many noble Lords have paid tribute to UK Music and so do I. The UK Music report, Destination Music, published in May 2011—the first study of its kind—highlighted the important economic contribution of music festivals and major concerts to tourism throughout the United Kingdom. The study revealed that they attract nearly 8 million visits from those defined as music tourists who spend £1.4 billion during the course of their trip. While domestic tourists make up the majority of these audiences, the contribution of overseas visitors, who spend up to four times as much per capita during their visits, is also very important.
I read that report with great interest and noted the regional differences in the types of music that attract tourists in. It is not surprising that in London, as my noble friend Lord Black emphasised, classical music and musicals play a key part. Elsewhere, it may be festivals but in the north-east, for example, it is concerts rather than festivals. The noble Lord, Lord Aberdare, noted many across Wales and elsewhere and the need to study this further. UK Music has contributed to our understanding of this. The noble Lord, Lord Black, spoke of the need to support music teaching in the conservatoires which underpin our orchestras. It is important to recognise not only their cultural contribution but also the contribution that they make to the economy generally, and I can assure him of our continued commitment to the conservatoires. It is because of the need to understand the impact of music on tourism and the economy that we look forward to UK Music’s new report which will be issued shortly.
We are supporting these sectors. According to UK Music, many festival organisers credit the Government’s Licensing Act, which assisted in streamlining the local authority licensing process for big events, with helping to double numbers of music festivals over the past decade. My noble friend Lord Clement-Jones’s Live Music Act extended the range of live music performances that can take place without a licence and we are committed to doing more. My noble friend Lord Clement-Jones noted that we will extend the audience limit for some events at small venues from 200 to 500. He also asked me about his leafleting Bill. I was here at Second Reading and he made a very cogent case but he will also have noted the assurance from my noble friend Lord De Mauley that while we are still seeking to reduce litter—the purpose of the original legislation—we will also consider guidance issued to local authorities. I look forward to further debates.
The industry can also benefit from business funding schemes established by Government and is well represented on the Creative Industries Council which proposes ways of overcoming barriers to growth. We provide funding for music through the Arts Council England which will invest over £70 million a year in music organisations up to 2015.
Music also forms an integral part of our major cultural events. My noble friend Lord Storey should be extraordinarily proud of the success of Liverpool 2008 which was, arguably, the most successful European Capital of Culture for many years. That clearly continues in Liverpool and I look forward to hearing more about the band The Stopouts. So successful was Liverpool 2008, generating over £800 million for the local economy and an extra 3.5 million new visitors, that the Government launched the UK City of Culture programme. Derry/Londonderry, the current title holder, has carried on this cultural torch, and is cited by the international Rough Guides as one of the must-see destinations in the world for 2013.
The right reverend Prelate is right to emphasise the unique contribution this country has made to church and cathedral music. In this debate—a music fest, as the noble Lord, Lord Haskel, put it—we have seen how diverse our music heritage and current activities are. I can assure noble Lords of our awareness of this. In answer to the noble Lord, Lord Haskel, the Arts Council has invested more than £1.25 million in the Benjamin Britten centenary celebrations. I note that several noble Lords mentioned Aldeburgh.
Noble Lords have flagged up one or two key issues and I shall do my best to cover them as rapidly as possible. I thank the noble Baroness, Lady Liddell, for recognising the good settlements that DCMS managed to secure in very difficult circumstances. However, I hear what noble Lords say about the pressure on budgets.
I heard what the noble Lord, Lord Aberdare, said about VAT, and I can assure him that the Government have considered that matter. The Treasury could not see a causal link between VAT rates and tourism levels, so I am afraid that the Treasury is thus far not persuaded. No doubt, it will note what the noble Lord has said.
I was asked about visas. We are of course continually seeking to improve our visa system to balance the need to protect the UK with a strong desire to ensure that requirements are as clear and straightforward as possible. I thank the noble Lord, Lord Berkeley, for recognising the efforts that we are making. I should point out that we are looking at improving the pre-entry visa experience as part of our tourism strategy. Our visa applications are now translated for the first time into the local languages of our key markets—namely, into Arabic, Chinese, Hindi, Russian, Turkish and Thai. I am astonished that that was not the case previously. We had a target of delivering 90% of online applications by December 2012, which has been exceeded. At present, more than 95% of applications are carried out online. I can assure noble Lords that we are very much aware of the importance of this area.
My noble friends Lord Clement-Jones and Lord Storey, and the noble Lord, Lord Stevenson, asked about a national strategy for music. I can assure my noble friends that music is a key part of the strategies in a number of organisations that work closely together to further the interests of our music sectors. The Arts Council’s strategy, set out in Achieving Great Art for Everyone, includes music as an integral part of our creative industries. It is also well represented on the Creative Industries Council. We also have our national plan for music education, which delivers £196 million for music education hubs. In February this year, the Arts Council and VisitEngland announced a strategic partnership outlining priority areas on which the two organisations will work together. Music is integral to our GREAT campaign whereby the issues facing the promotion of music can be considered. A strategy is indeed being brought together.
My noble friend Lord Clement-Jones emphasised the importance of the promotion of music abroad by trade envoys. He will know that my noble friend Lady Bonham-Carter is newly appointed by the Prime Minister as a trade envoy for the creative industries. I know that she regards this work as very important. I gently point out to the noble Lord, Lord Berkeley, that this is not a Conservative but a coalition Government and that I happen to be from the other part of that coalition, as is my noble friend Lady Bonham-Carter, who was appointed by another part of the coalition, the Prime Minister. We achieve most by working together. I can also assure the noble Lord, Lord Berkeley, of our great support for the BBC, which was echoed in the Chamber when he spoke today. We have confidence that the issues that he has raised will be addressed by the BBC. The noble Lord asked me to look into guidelines on fees, and I will do so.
I realise that my time has run out. If there are any other issues that I have not addressed, I will answer those by letter. It has been an extremely interesting and enlightening debate. Noble Lords have made extremely clear the contribution of music both to our culture, not least as expressed by Plato, and to our economy, and how music plays its part in contributing to tourism, and we welcome that enormously.