Tourism: UK Economy

Lord Harrison Excerpts

Tuesday 9th November 2010 Lords Chamber

[Baroness Garden of Frognal]

My Lords, I hope that people are coming here to spend money not just because the currency is weak, although I acknowledge that that may be an added attraction. We hope that as the economy picks up so the attractions of coming to this country will be even greater, even if it costs people a little more when they come here.

[Lord Harrison]

My Lords, how does it help the competitiveness of the United Kingdom tourism industry when VAT has been raised to twice the level of that in the other EU competitor countries?

[Baroness Garden of Frognal]

The noble Lord of course makes a very valid point on VAT. However, the UK applies a zero rate of VAT to most food and public transport and other parts of the spend of people in the tourist industry.