Tourism: Covid-19

Alex Sobel Excerpts

Thursday 10th September 2020 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I rise to sum up what has been, as such debates often are, a very informative debate. Hon. Members have spoken with great passion about the issues facing their constituencies. I particularly thank the hon. Member for North Devon (Selaine Saxby), who secured the debate and spoke passionately about the need to support our coastal communities.

The UK tourism industry is the sixth-largest in the world. It employs 3.3 million people and generates revenue of £155.4 billion. In this debate, we have toured the nation, and this summer, I myself visited many different parts of our tourism sector to see the impact of covid, the effect of Government support and what additional measures the sector needed. We cannot truly understand the impact unless we have seen it at first hand.

I visited the zoos in London and Knowsley, close to the constituency of my hon. Friend the Member for Garston and Halewood (Maria Eagle), who made excellent points about reduced capacity first highlighted on my visit to Merseyside, and the zoo in Newquay. I see the hon. Member for St Austell and Newquay (Steve Double) in his place, but unfortunately we did not reach him. I also visited the Eden Project in his constituency and went paddle boarding on the Fowey.

I visited aquariums in Brighton and Plymouth, Hever castle and Powderham castle, the site of the proposed Eden Project North, in Morecambe, and the winter gardens there. I also went to the Manchester museums and galleries and Crownhill fort in Plymouth. I visited Brighton pier and the i360, and the Van Gogh immersive experience in York, in the constituency of my hon. Friend the Member for York Central (Rachael Maskell), who made an excellent speech about need to return confidence to our sector. Although I did not visit Warwick castle this summer, I did visit when I was a child, and I am sure my hon. Friend the Member for Warwick and Leamington (Matt Western) will invite me back again.

I also stayed at the Seven Bays caravan park in north Cornwall, and I am pleased that the hon. Member for Cities of London and Westminster (Nickie Aiken) stayed at Unison’s Croyde Bay caravan park. I met hotel, restaurant and bar owners around the country, sometimes in person and sometimes on Zoom. Each had a unique perspective, but all had the same central problem: the huge financial black hole caused by the three-and-a-half-month closure of their organisations and the huge drop in visitor numbers. They all spoke about their fears about the coming winter and their future prospects.

Tourism was always going to be hit hard by a pandemic that meant people had to stay at home. When some of the restrictions were lifted in June, when the sun shone and the newspapers led with photos of bursting beaches and packed-out towns, it seemed to many that summer and the tourism industry underpinning it might just have been spared, but tourism reopened later than any other industry. Despite what the front pages might have shown, it has been, and still is, operating at severely restricted capacity. The industry might have had an okay August, but it lost Easter, May half term, two bank holidays and the whole of June. Those four months are crucial to the industry. Some 92% of tourism businesses said that their revenue had decreased by more than 50% as a result—a point made by the hon. Members for Edinburgh East (Tommy Sheppard), East Devon (Simon Jupp) and Glasgow Central (Alison Thewliss). This means that the industry is effectively operating through three consecutive winters: the winters of 2019 and 2020 and the winter of coronavirus.

Visit Britain has forecast that tourism revenue in 2020 will decrease by £68.8 billion, which equates to a loss of more than 1 million full-time jobs. Including the 300,000 outlying jobs also at risk, the figure is close to 1.35 million—a third of all tourism jobs. That is 1.35 million full-time jobs that could be lost in the sector, 1.35 million people—people with bills, people with families to feed and people who need and want to work, to provide and contribute.

The Chancellor described his choice to end furlough next month as one of the most difficult decisions. I know the Minister, who is always very kind when we talk, is listening diligently, and I ask that he listen to the tourism industry and reconsider the decision to end furlough. The loss of more than 1 million jobs would be devastating, not just for individual families and households, but for the tourism industry and the health of our whole economy.

With much of the tourism industry yet to reopen and the main summer tourismt season ending in September, ending the furlough scheme means two things: mass unemployment and mass business closures. It is easy to think about the tourism industry from the perspective of the consumer—we can all imagine ourselves sacrificing our holiday to save lives during a deadly pandemic—but we must remember that tourism means jobs. We know that the UK tourism industry is one of our biggest employers and that it is worth 9% of GDP, but many people do not realise that it is also the largest non-governmental mechanism for transferring wealth from urban to rural and seaside communities—a point made by the hon. Member for Arfon (Hywel Williams). These rural and seaside economies are important. Coastal tourism, pre covid, was valued at £13.7 billion in England and £17.1 billion in GB. Tourism employs 20% of the workforce in most coastal towns and more than 50% in many, including Newquay, St Ives, Skegness, Mablethorpe, Cleveleys, Whitby and Minehead. The hon. Member for Tiverton and Honiton (Neil Parish) made the excellent point that the food industry is inextricably linked to the prospects of tourism. Jobs in coastal towns have been disproportionately affected during the pandemic, and covid has cost seaside towns across the country £10.3 billion in lost revenue, according to the National Coastal Tourism Academy. The hon. Member for Bath (Wera Hobhouse) correctly made the point that destination management organisations need support to help these economies, and the hon. Member for Totnes (Anthony Mangnall) spoke about promoting domestic tourism as a whole.

That is not say that things were rosy for these coastal regions before covid. It is no secret that many seaside towns in Britain have been struggling for many years. Poverty, inequality and deprivation presided over by successive austerity-driven Conservative Governments have meant that many coastal towns have been in social and economic crisis since long before the pandemic swept ashore. My right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), when he was in Cornwall, said:

“We need a targeted extension of the furlough scheme for the hardest-hit sectors and proper support in place to help those who are unemployed back into work. People are worried about their job prospects. The Labour Party is focused on fighting for every job and every part of the country.”

He is of course absolutely right. He said that in a coastal town because he and we all know that this must include revitalising our coastal communities, reviving jobs and industries, and diversifying these economies. The current crisis has made it patently clear that this is more urgent than ever.

We cannot discuss tourism in earnest without acknowledging the hospitality industry—one of the key forces powering the UK’s tourism economy. Hotels, pubs and restaurants rely on the tourist trade, and vice versa. Equally, the coach industry that delivers the customers to the hospitality industry has been absolutely decimated by this crisis—a point well made by the hon. Members for Angus (Dave Doogan) and for Sedgefield (Paul Howell). While the Chancellor seemingly saved the day with the eat out to help out scheme—and it cannot be denied that the nation ate out with gusto—the fact remains that only half of restaurants are open and two thirds of businesses are still not making a profit. The number of staff furloughed still remains similar to July, with 51% of hospitality staff still not back at work in August. Taken with the fact that over 80% of employees in the tourism industry have been furloughed, compared with 32% of the total UK workforce, it is clear that ending support for everyone at the end of October will be disastrous. It is a one-size-fits-all approach that is destined to fail. We need a targeted extension to the furlough scheme to protect our most vulnerable workers and industries through this critical time. I am pleased that the hon. Members for North West Norfolk (James Wild) and for North East Fife (Wendy Chamberlain) made these points.

As a party, we are also calling for a £1.7 billion hospitality and high streets fightback fund to help tourism and hospitality businesses that are unable to fully trade. We are calling for this because Labour recognises that the Government’s one-size-fits-all approach to jobs risks tourism falling through the cracks. As a minimum, the Government, rather than clawing back the underspend in grants, need to redeploy it to other industries, particularly those struggling in the visitor economy. While the epidemic has dealt a devastating blow to our tourism industry, with a swift and urgent Government intervention there is an opportunity not just for survival but for recovery and growth—an opportunity to limit the long-term impact of covid-19 not just on people’s livelihoods and businesses but on our towns and our collective heritage and history.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Minister, Nigel Huddleston.