Tourism: Covid-19

Bob Seely Excerpts

Thursday 10th September 2020 Commons Chamber

[Selaine Saxby]

I thank the hon. Gentleman for that intervention.

The pandemic has indeed shone a light into many of our economic sectors, highlighting the interconnectivity of so many activities. Indeed, the plight of the aviation sector—the subject of our previous debate—is inextricably linked to the overseas visitors who are most notable by their absence this summer. We need no statistics to know that for many of us here, it is far easier to get across Westminster Bridge now, without having to navigate through crowds of tourists. Overseas visitors normally spend in excess of £28 billion each year visiting our fantastic tourist destinations—more than our normal domestic tourism expenditure. That should start alarm bells ringing about the current situation in our tourism sector.

In Devon, we see over 35 million visitors a year; 11% of the population across the entire county are employed in tourism, and the proportion is much higher in some Devonian constituencies such as mine. Devon alone estimates its tourism turnover to be down by £1.3 billion this year; nationally, the estimate is over £68 billion. I remember with alarming clarity, as we went into lockdown, despite my self-appointed role as the one-woman tourist board for North Devon in Westminster, calling for my tourism businesses to close their doors. Over 80% of tourism businesses closed, versus 24% of businesses overall; 75% of tourism employees have been furloughed, versus 27% of the working population. The sector was late to reopen, of course, and in many cases has not been able to open even to 50%.

Many sectors have had a difficult summer, and focusing on tourism in this debate is not to belittle the difficult experiences of others. Tourism has seen something of a resurgence, and the sun has come out this summer for some in the industry, much helped by the eat out to help out scheme. Self-catering and holiday parks have reported some great results, and forward bookings look robust. However, as I keep reminding people, winter really does not start until January in Devon. A stormy day at the seaside is worth travelling for, in its own way. I recall with great affection, as a child with my father, getting a soaking at high tide from a huge rogue wave, and I have enjoyed watching a few roar across the Atlantic coast outside my window, even during this summer recess.

Positivity is something we can bring to this debate, and I thank colleagues in all parts of the House who have visited my North Devon constituency this summer. We all have a role to play in boosting our tourist economies by encouraging visitors to come and see what many may have forgotten a British holiday has to offer. After being cooped up for months, the pandemic has reminded many of us of the benefits of wide open spaces, and our beaches and moors have seen huge influxes of visitors; our city and town centres, however, have not. Indoor attractions continue to struggle to approach break-even with social distancing, not to mention the plight of the coach industry, conference and exhibition venues, tour operators, airlines and, unfortunately, many more businesses.

The tourism industry was in good shape before the pandemic, with annual growth over the past five years exceeding 4%; however, it remained plagued by low productivity, with a transient temporary workforce. Because of the nature of those working in it—from young people working a summer job to migrants trying to make ends meet—high staff turnover has hampered the growth of the sector. Hopefully, initiatives such as T-levels and apprenticeships will help more young people to see tourism as a career option and not just a summer job.

The cut in VAT will enable more small independent tourist businesses to stay open into the winter. Many in the industry were campaigning for a VAT cut long before the pandemic, to encourage coastal communities to extend their tourism season rather than close their doors for the winter. Perhaps that VAT remaining in place longer is what we need to help the industry to respond and rebuild.

[Bob Seely (Isle of Wight) (Con)]

I know that the Minister—an excellent Minister—is listening carefully. I think that we can all agree that the longer the 5% VAT reduction is kept in place, the more we can sustain and develop our tourism economies as we go into the years ahead.