Leaving the EU: Tourism and the Creative Industries

(Limited Text - Ministerial Extracts only)

Tuesday 17th April 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Michael Ellis)]

It is a pleasure to serve under your chairmanship, Mr Bone. We probably have about four or five minutes before the Division bell goes.

I thank the hon. Member for Edinburgh West (Christine Jardine) and congratulate her on calling this important debate. I do not think I can do as well as the shadow Minister in name-dropping various pop groups and organisations that the hon. Member for Perth and North Perthshire (Pete Wishart) might have been a member of in his earlier and current days, but I can certainly say that Brexit is happening. The people have spoken in the referendum.

I am much more optimistic than the hon. Member for Edinburgh West and many in the Chamber at the moment. We have heard a good deal of negativity and pessimism this afternoon, but I much prefer the view taken by my right hon. Friend the Member for Belfast North (Nigel Dodds), who is no longer in his place, who spoke about the opportunities and the optimism. It is always helpful to see glasses as half full rather than half empty.

I welcome the contributions from right hon. and hon. Members, and thank them for stimulating a lively debate in which the crucial role of the UK’s creative and tourism sectors has been recognised—I think that on that subject we are all in agreement. My right hon. Friend the Member for Wantage (Mr Vaizey) made his address to the Chamber—with his usual charm, if I may say so. He is certainly missed in the sector, contrary to his self-deprecating remarks. He was Minister for some six years, and I think I am right in saying that the industry wrote a group letter to a national newspaper saying just how very much he would be missed. Frankly, his departure provoked an extraordinary letter of appreciation.

My right hon. Friend and others mentioned supporting arts in the regions. In this coming financial year, 75% of Arts Council England’s funding will be going outside of the London area. The Department is supporting the cultural development fund and the northern cultural regeneration fund. A lot of money—rightly so—is going out of London and into the regions.

As the Minister for the arts, heritage and tourism, I am responding to this debate on the effects of the UK leaving the EU on the tourism and creative industry sectors. We have created the best in this country, as many Members from all parts of the House have mentioned. In my view, we had the best before 1973, and we will have the best after we leave. I am also happy to say that my Department already works across Government, including with civil servants at the Department for Exiting the European Union, and there is no reason to think that we will not continue to do so. In fact, we always look to work together.

I will make some overall points about the sectors and the challenges of EU exit, and I will then respond in turn to some of the key issues raised by colleagues. I recognise that there is particular interest in the devolved arrangements for both sectors following EU exit. I am keen that the future arrangement works for all sides. I am particularly looking forward to meeting colleagues from the devolved Administrations this Thursday in Edinburgh to discuss their particular concerns about tourism in more detail. I want it to be an ongoing discussion. If I do not have time to talk about that ongoing discussion in the limited time available this afternoon, I will be pleased to follow up in writing.

Members will be aware that the Digital, Culture, Media and Sport Committee recently published its report, “The potential impact of Brexit on the creative industries, tourism and the digital single market”. Some of the points raised in this debate echo the conclusions of that report. I have noted those conclusions, and the Government will submit our response in due course in the normal way.

To set the scene, Members will be aware that the sectors that DCMS represents are an absolutely huge success story for the UK—there is no doubt about that—and tourism and the creative industries are no exception. To a large degree, their success has gone hand in hand: tourism helps the creative industries thrive, as the shadow Minister mentioned, and vice versa. As an example of the close relationship, UK Music’s “Wish you were here” report for 2017 stated that there were 12.5 million music tourists in 2016—that is music tourists alone—and nearly 50,000 full-time jobs were sustained by music tourism. It is huge. In 2016, tourism was worth more than £65 billion to the economy, and it is still growing every year. In fact, it is growing exponentially. Provisional figures suggest that 2017—we have most of the figures—was a record-breaking year, with just under 39 million overseas visitors to the UK. That was an increase of 3% on 2016, which was itself a record year. The situation is extremely promising. The creative industries are also a major cultural and economic success for the UK. It is a high-value, high-growth sector that was worth nearly £92 billion to the economy in 2016.

These sectors play an important role in showing the world the very best of Britain and in strengthening global relationships. We are No. 1 in the world for soft power. There are many reasons for that, but one of the main ones is the strength of the sector. The sectors also play a role in demonstrating that we are open for business.

[Mrs Hodgson]

Will the Minister give way?

[Michael Ellis]

I am sorry, I do not have time.

We are not resting on our laurels. As Members will be aware, DCMS recently published its sector deal for the creative industries. That important piece of work sets out an ambitious proposal on how Government and industry will work together to accelerate growth and productivity. The sector deal is a landmark document, and I urge Members to look at it if they have not already. It recognises the critical importance of the creative industries to the UK’s economy, society and global influence. We intend to publish a similar deal for the tourism sector in due course.

I would now like to focus on the freedom of movement point that was raised by one or two Members, as it is a key issue that colleagues and stakeholders have raised. The UK tourism and creative industry sectors have strong ties with the European Union. There are a large number of international workers in both sectors and they regularly move across the EU. EU nationals form a significant proportion of the domestic tourism market.

--- Later in debate ---

[Michael Ellis]

As I was saying, the UK’s creative industries likewise require access to skilled workers from the European Union. It is important that UK and EU workers can quickly and efficiently transfer across member states on time-limited projects such as film co-productions, or as touring musicians and performers.

I have spoken to a number of tourism industry leaders since taking on this role, to build a strong understanding of the challenges and opportunities on freedom of movement and to ensure that the sector can continue to have access to the necessary skills. We are working closely with the Home Office, Revenue and Customs and the Department for Exiting the European Union to ensure that they are well informed of these issues. The new immigration system will not come into place until 2021, following the agreed implementation period. During that time, existing arrangements will broadly continue to apply to EU citizens coming to the UK to visit, work or study.

I turn now to the UK’s reputation as a tourism destination. Tourism continues to be a significant success for the UK. In 2017, the World Economic Forum found that the UK had the fifth most competitive tourism market in the world. Europe is our key market. The projected figures for 2017 are that, of the 39 million visits to the UK, nearly two thirds were by EU residents. Outbound as well as inbound visits are important and, similarly, of the 71 million visits overseas by UK residents, it is projected that three quarters were to other EU countries. Clearly, it is in both the UK’s and the EU’s interests to maintain this ease of travel and smooth entry at the border. We are also working closely with industry partners to promote transparency for consumers, and internationally to promote open global markets.

We are pressed for time, but another matter that I want to mention is access to EU funding streams for tourism and the creative industries. To provide some certainty for our sectors in the near future, Members will know that at the joint press conference between the Secretary of State for Exiting the European Union and Michel Barnier on 19 March this year it was confirmed that UK organisations could continue to bid for EU programmes until December 2020. Details of the next multiannual financial framework are expected later this year, and that will provide greater clarity on our position. We will seek to stay beyond December 2020 in programmes that are mutually beneficial to the UK and EU and will continue to actively investigate the funding streams that support our sectors.

On the regulatory framework, the UK and EU already have close regulatory alignment built on trust in one another’s institutions. That co-operation will continue. Discussions include European legislation on consumer protection as well as regulations on temporary working arrangements.

Brexit presents both challenges and opportunities for these sectors, as it does for the whole of the United Kingdom. Although much of the public debate focuses on the challenge, I have huge confidence in the tourism and creative industry sectors and in their abilities to capitalise on the exciting opportunities. I am keen that the Government should continue to support tourism—they will, so long as I am Minister for tourism, and beyond—and the creative industries at this very important time, listening to the views of our stakeholders. I would likewise be pleased to stay engaged with parliamentary colleagues on this topic. I firmly believe that tourism and the creative industries will continue to be a major economic driver for the UK and will only grow in importance in the years ahead. There is no reason to believe that the upward trends will not continue as we exit the European Union. Our culture and creativity play a huge role in making the UK a highly attractive place to visit and work.