Lord Lee of Trafford
To ask Her Majesty’s Government what is their current assessment of the importance of tourism to the United Kingdom economy.
Lord Lee of Trafford (LD)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as chairman of the Association of Leading Visitor Attractions.
Lord Gardiner of Kimble (Con)
My Lords, the importance of tourism to the UK economy is clear. It contributed £58 billion directly to the economy last year and supported more than 1.75 million jobs. Those figures rise to £127 billion and 3.1 million jobs when the indirect impacts of tourism on the wider economy are included. That is why this Government have invested more than £165 million, including private sector matched funding, in the GREAT and other marketing campaigns.
Lord Lee of Trafford
Given that tourism is our fifth largest industry, that a third of the new jobs created in the past three years have been in tourism and that tourism is so important to many cities, towns and regions in this country, does my noble friend realise why those of us involved in the Campaign for Tourism are determined that tourism features in the manifestos of the major parties in the coming general election, unlike last time, when they did not feature at all? Is it not time that, given its importance, tourism was included in the title of the Department for Culture, Media and Sport?
Lord Gardiner of Kimble
My Lords, I emphasise that the Government recognise that tourism is a vital part of the future of the UK economy. Indeed, the Prime Minister met officials from the Campaign for Tourism only last month. The point that my noble friend makes about manifestos is obviously very potent. I know of at least four government departments that have an interest in tourism: the Treasury, the DCLG, BIS and of course the DCMS. There is a Minister with responsibility for tourism but this is a matter that has cross-departmental importance.
Lord Wigley (PC)
Will the Minister give attention to the disparity in the number of international tourists who came to various parts of these islands in the decade between 2002 and 2012? Is he aware that over that period, whereas there was an increase of some 30% in London and of more than 40% in Scotland, in Wales there was a marginal decrease and in north-east England a decrease of almost 20%? Will he consider laying down for VisitBritain not only targets for the overall number of international visitors but targets for the regions in England and for the other three nations?
Lord Gardiner of Kimble
My Lords, I say to the noble Lord that I do not think we should have any ceiling for the targets. We have to take the opportunity in the United Kingdom to ensure that as many people as possible visit from abroad and indeed that there is as much domestic tourism as possible. I was interested to note that according to the recent Deloitte report there are currently 206,000 direct and indirect tourism jobs in Wales. Indeed, the Great Britain Tourism Survey for last year showed that British residents made nearly 10 million visits to Wales, which was 3.4% up in comparison with the previous year.
Baroness Seccombe (Con)
My Lords, there was a startling increase in the number of visitors from abroad last year. Does my noble friend accept that in no small part that was due to the enormous success of the Olympic Games? Should we hope for a similar bounce from the Commonwealth Games this year?
Lord Gardiner of Kimble
I am sure all noble Lords will agree that the Commonwealth Games give us an enormous opportunity to welcome many friends and visitors from the Commonwealth and well beyond. I was particularly interested in the Anholt Nation Brands Index, which is so important in terms of perception of the UK. The UK overall nation brand has held third place—the same as 2012—and in terms of welcome has moved up three places from 13th to 10th and for sport has moved up one place from sixth to fifth. These are encouraging figures and the whole nation should be proud of them.
Baroness Liddell of Coatdyke (Lab)
My Lords, the noble Lord, Lord Lee, makes an excellent point about including tourism in the name of the Department for Culture, Media and Sport. Can the Minister name any other private sector industry that by 2025 will have created 630,000 new jobs? Can he also tell the House how remote areas of the United Kingdom will be supported by the Government in increasing tourism jobs, not least in those areas which do not have broadband and mobile coverage?
Lord Gardiner of Kimble
I hope that, by the time the programmes for broadband have finished, all parts of the country, particularly those remote areas which are such wonderful parts of rural Britain to visit, will have benefited. I suspect that I am in difficulties in looking at an alternative but, of course, tourism is made up of many small businesses. That is an area which we are very keen to support. Small and medium-sized enterprises are a key feature of tourism’s success.
Baroness Coussins (CB)
Is the Minister aware that the National Gallery is offering its audio guide for its current main exhibition in English only? Visitors from Italy, Spain and France have said that they cannot understand it and feel excluded. Should not all global institutions hoping to benefit from tourism provide their public information resources in several languages, as we do in this House?
Lord Gardiner of Kimble
My Lords, the noble Baroness makes a strong point. I know that as part of the China Ready programme, for instance, many of the major visitor centres now have their guides in Cantonese and Mandarin. I encourage the British Museum, a great institution which has the largest number of visitors in this country—many millions—and all museums to look at language opportunities.
Lord Roberts of Llandudno (LD)
My Lords, the Minister will be as aware as I am of the decline in traditional industries in Wales. The result has been an increase in the importance of the tourist trade, which today employs about 112,000 people directly and 56,000 others indirectly. Does the Minister not agree that this is an opportunity to encourage that growth? Nothing would do more to help that than a reduction in VAT on visitor and tourist facilities and hospitality from, say, 20% to 7%.
Lord Gardiner of Kimble
My Lords, I have already referred to the robust figures for Wales in terms of employment. There is a great industrial heritage there and many visitors. However, on VAT relief, one should remember that the United Kingdom provides cultural attractions which have significant VAT relief, including national museums and galleries, and that other countries impose tourist taxes which we do not.