Oral Answers to Questions

Debate between Lord Hanson of Flint and John Penrose

Thursday 20th January 2011 Commons Chamber

[John Penrose]

We are engaged in a recalibration and reorganisation of local tourist boards—destination management organisations, to use the jargon—which are being refocused to become more private sector-led. The express intention is to give prominent attractions, such as Chester zoo, a much bigger and stronger say in how their local destinations are promoted and marketed to tourists in the UK and abroad.

[Mr David Hanson (Delyn) (Lab)]

What assessment has the Minister made of the rise in VAT on the potential for the promotion of tourism? Would he explain to people who provide tourism products whether they should absorb the cost of that rise, thereby cutting their profits, or pass it on to their customers, thereby offering a disincentive for tourism in the UK?

[John Penrose]

Clearly the rise in VAT is principally a matter for the Treasury, but it affects all economic sectors and every business in the country will have to make precisely the judgment that the right hon. Gentleman describes. As a politician, I would not dream of telling individual businesses how to run their business—it must rightly be a matter for them—but I am sure that, because they have skin in the game, they will make the right decision for their business in their particular sector.