Leaving the EU: Tourism and the Creative Industries

Dan Poulter Excerpts

Tuesday 17th April 2018 Westminster Hall

[Christine Jardine (Edinburgh West) (LD)]

I beg to move,

That this House has considered the effect of the UK leaving the EU on tourism and the creative industries.

It is a pleasure to serve under your chairmanship, Mr Bone, and to have the opportunity to debate the effect that Brexit could have on tourism and the creative industries in the UK. These are two vital and vibrant sectors of our economy, which I believe have largely been overlooked and underestimated in the Brexit debate. Their annual contribution to our economy needs to be acknowledged and protected. If Brexit goes ahead—I believe it is an “if”—these sectors will need special measures to prevent jobs from being lost and income draining from the economy.

It is no exaggeration to say that tourism and the creative industries are linchpins of our economy, which we cannot allow to be sacrificed on the Brexit altar of Conservative party self-preservation. Many of the millions of jobs and livelihoods that these industries support could be lost if we do not stop this dangerous economic self-harm. While they are significant separately, they also come together in some of our most iconic popular and cultural events, such as Glastonbury, the Proms and—for me, in my constituency, the most significant example—the Edinburgh International Festival and its Fringe. The Edinburgh festival is the biggest and most successful event of its type in the world, and has experienced seven decades of success—unending, growing success. It is a fantastic and awe-inspiring month-long festival of music, theatre, arts, books, comedy, street performers and now politics, but even it will not be immune to the threat posed by Brexit. You do not have to take my word for it, Mr Bone. The director of Festivals Edinburgh, which leads efforts to promote the city’s flagship events around the world, has said:

“There is a sense of threat and risk and making sure that Brexit doesn’t put us in a worse position.”

There are plenty of figures that illustrate the argument for both industries needing protection, but I will look first at tourism. Tourism encompasses about 250,000 small and medium-sized enterprises across the UK, and its growth is on a par with that of our digital industries. It supports approximately 3 million jobs, which are spread across every single local authority in Britain; this is not a problem that affects only one part of the country. Tourism brings in about £127 billion a year to the UK—9% of GDP. Around 37 million visitors come here every year, and in 2016 almost 70% of those visitors and 44% of what they spent came from other EU countries. Eight of our top 10 in-bound tourist markets are other EU states. Those visitors may now think twice about coming here. The UK’s tourism earnings from Europe will not be easily replaced by other markets, such as the USA and China, which require long-haul journeys and are much more difficult to access. In my own city of Edinburgh, almost 2 million international visitors spend £822 million a year—the figures are quite staggering. It is clear that if tourism begins to fail, or the industry begins to shrink, many areas, particularly our rural communities and parts of Scotland, will suffer badly. As I pointed out, jobs in every area of the country will be under threat.

There is a clear link to the hospitality industry and attractions, where, coincidentally, 50% of the workforce in Edinburgh come from other EU member countries. Those workers are now worried about their ability to stay and work in this country. The ripples of a decline in visitor numbers will reach far into other sectors of the economy—for example, aviation.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate the hon. Lady on securing this debate. As a remain voter, I am sympathetic to her position, but does she agree that sometimes one of the main drivers of tourism is the exchange rate, and one thing we have seen is increased tourism as a result of decreased value of the pound against the euro and other currencies, perhaps as a direct consequence of that Brexit vote? I know she will go on to develop this point, but does she also agree that the main concern is the workforce in the tourism industry—that so many workers in tourism are from Europe and overseas—and that, as in agriculture, that is a big problem that needs to be considered by the Government?

[Christine Jardine]

I do not agree that the decline in the value of the pound solves the problem, because it creates other problems elsewhere in the industry, as it suffered its biggest slump since the devaluation under Harold Wilson. However, I do agree that our main problem in this industry will be the workforce and how we will replace the workers who in parts of the country outside Edinburgh make up 20% of the workforce, but in Edinburgh and Glasgow in Scotland make up almost 50%.

Aviation is one of the UK’s success stories and supports 500,000 jobs in the tourism industry. The current ease of transit to and from the EU enables tourism to contribute £500 million a week to the economy, but 85% of the UK’s air traffic is through our EU membership.