Tourism

Baroness Merron Excerpts

Thursday 24th June 2021 Lords Chamber

[Baroness Merron (Lab)]

My Lords, I congratulate the noble Baroness. Lady Doocey, on securing this timely and pertinent debate, and I thank the noble Lord, Lord McNally, for cheering us up.

Among the very real concerns expressed today, I have enjoyed hearing noble Lords showcase some of the best of what Britain has to offer, on a colourful tour of the country from the comfort of this Chamber. As part of this rich tapestry, I am grateful to my noble friend Lady Young of Old Scone for reminding us of the benefits of our beautiful woodlands; my noble friend Lord Haskel for promoting the cultural delights of Aldeburgh; my noble friend Lord Snape for raising the matter of financial burdens upon our great cities; my noble friend Lady Quin for being a tremendous ambassador for the north-east; and my noble friends Lord Campbell-Savours and Lord Dubs for speaking up for the provision of housing for local people, as well as for the Lake District and, of course, the great British weather.

I have to confess to partiality in welcoming the wise words of the right reverend Prelate, who spoke to the issues of concern in respect of coastal towns and who also referred to my former constituency of Lincoln, which is a treasure trove of delights. Those visiting it are enchanted by the cobblestones of Steep Hill, leading up to a castle that houses the Magna Carta and the Charter of the Forest and a cathedral described by John Ruskin as

“out and out the most precious piece of architecture in the British Isles”.

I have always been struck by the powerful multiplier effect of the visitor pound. While students, families and academics may come primarily for the cutting-edge University of Lincoln, and while football fans may travel in to watch the mighty Imps in action at Sincil Bank, they will spend time and money while in the city in the shops, hotels, restaurants and pubs. So it troubles me to see boarded-up properties now and to talk with proprietors who are struggling with the challenging day-to-day issues of staffing, and even the basics of keeping open, as a result of the pandemic. Therefore, it is no surprise that noble Lords have powerfully set out the brutal realities being experienced by businesses, employees and local communities in these times. I urge the Minister to take heed of these calls and the many sensible proposals that have come forward today to step up action from the Government.

Much of this debate has, by necessity, been focused on the devastating impact of the pandemic. We know that the food and accommodation sector has been one of the hardest hit by restrictions on trading, which were often declared at the last minute. We saw economic output in the hospitality sector down 90% in April 2020 compared with February 2020. Add to this ongoing fixed costs, accumulating debt, difficulty with staffing and persistent low revenues and cash reserves, and it is surely a toxic mix for an industry that has been hit harder than most.

As of early March, the Office for National Statistics reported that 43% of hospitality businesses were trading, compared with 74% across all industries. We also read that 55% of hospitality businesses had temporarily paused trading, compared with 24% across all industries, and almost one in five hospitality businesses had “low confidence” that their business would survive even the next three months. On 31 January, 56% of eligible jobs in food and accommodation were furloughed, compared with 16% across all industries. This is a shocking state of affairs on an economic and a human level, both now and for the future.

Undoubtedly, the Minister will reference the recently published Tourism Recovery Plan. Regrettably, those in the industry experienced major delays in receiving delivery of this plan, and, when they opened the case, they found that the Government had forgotten to pack everything that they needed. These are extraordinary times that call for extraordinary measures, but much of this plan is just a repackaging of policies already announced. The few new provisions that are in the plan barely touch the sides for this hardest-hit industry, which employs 3.4 million people and generates £147 billion for the UK economy.

The truth is that for the Government to reach the targets in the strategy—of domestic tourism recovering to 2019 levels by 2022 and inbound tourism by 2023—rather more is needed. To rebuild confidence certainty, support and clarity are what tourism needs from government. A specific recovery plan is needed to address the long-term decline of seaside and coastal towns. It is crucial to secure the opportunities for growth presented by the growth in staycations. I encourage the Minister to re-visit the two Select Committee reports which we have heard about today: The Future of Seaside Towns and Time for a Strategy for the Rural Economy.

Tour operators and travel agents need to sell the UK as a destination in foreign markets. They need targeted support to help them survive until international travel can open up again. As we await the details of an announcement, as has been called for on many occasions, we desperately need demystification of the flawed traffic-light system to include just two simple categories: a red list alongside a tightly managed green list. Amber just does not cut it. While we grapple with this traffic-light system, I hope that the Government will be bold in taking steps to encourage and make it possible for people across the UK to enjoy being a tourist in their own local areas, or to travel to the many attractive parts of the country so warmly promoted by noble Lords today.

On the domestic front, as we have heard in this debate, the VAT reduction needs to continue to allow businesses to rebuild, with a clear timeline for when events, exhibitions and conferences can fully operate to rebuild business tourism. With fewer than one in five businesses in the sector having all the staff they need, and over a third being forced to reduce hours or services, we need support for businesses to find the right staff and retain them.

I hope that the Minister will use his best efforts to take the much-needed steps to protect and promote the cause of tourism in this country. Our economy demands it, our people need it and our communities rely on it.