Tourism: UK Economy

Lord Palmer Excerpts

Tuesday 9th November 2010 Lords Chamber

[Baroness Garden of Frognal]

My Lords, we agree that the arts and heritage play a very significant part in national life and provide a great draw for tourists to our country. We hope that in the run-up to the Olympics, when the country will be getting widespread coverage internationally, more tourists will be coming into the country and will be adding their support and their financial help to some of the treasures that we have in this country.

[Lord Palmer]

My Lords, will the Minister consider setting up a committee to look into the ridiculous situation of air passenger duty, particularly bearing in mind the forthcoming Olympics? It really is grotesquely unfair in relation to other European countries. I declare an interest as my home tries to be a tourist attraction.

[Baroness Garden of Frognal]

My Lords, the Treasury advises that aviation is relatively undertaxed, paying no fuel duty or VAT on tickets, so it considers that the reform of air passenger duty ensures that aviation contributes fairly to public services and strengthens the environmental signal of the tax. Of course, it falls more heavily on those who are not flying standard class.