Tourism: Covid-19

Greg Clark Excerpts

Thursday 10th September 2020 Commons Chamber

[Selaine Saxby]

Indeed. It is a far more complex issue than me standing here today and asking for more blanket support for the tourism industry.

Destination management organisations and industry bodies are working tirelessly in the background and are well placed to represent the sector. We need our DMOs to be more robust, with a sustainable funding mechanism. We need a clearer strategy and we need those long talked of tourism zones to become a reality. As we leave the EU, we must also look at reducing red tape, with the removal of travel package regulations, for example.

Some of the tourism sector may have been slowly eased off life support this August, but it is not ready to be discharged just yet, as I have illustrated. I hope the ingenuity and creativity displayed by the Treasury and the Department for Digital, Culture, Media and Sport to date will be replicated in the coming months to give the tourism industry the leg up it so desperately needs to ensure we can welcome international visitors back, as well as those of us visiting parts of the UK to help out in the coming months.

[Greg Clark (Tunbridge Wells) (Con)]

rose—

[Maria Eagle (Garston and Halewood) (Lab)]

I am happy to give way to the right hon. Gentleman, if he has an opportunity to intervene on me.

I congratulate the hon. Member for North Devon (Selaine Saxby) on obtaining the debate and on how she set out her concerns. Tourism and the visitor economy are one of the main pillars of the economy and regeneration of Liverpool, my city. This has been the case especially since 2008 when it was European city of culture.

The entire city region’s visitor economy is worth more than £5 billion annually. The city region attracted 60 million visitors last year and employs more than 57,000 people. By the start of June, the lockdown and covid had cost the sector in Liverpool alone almost £1 billion, so the hon. Member is right to bring this issue to the Floor of the House. It is not only in our beautiful coastal areas that this has a major effect, so cultural tourism in Liverpool is not just a nice add-on; it is a fundamental part of the economy and the way forward in my city. To illustrate that, almost 50% of business rates revenue in Liverpool comes from the leisure, hospitality, digital, creative and culture sectors, so it is not just our beautiful seaside areas and counties where this is tremendously important.

Many aspects of this industry are likely to be the last to come out of lockdown. Even though the support that the furlough scheme has provided has been very welcome, I have still seen a doubling of unemployment in my constituency during lockdown. There are still 48,500 people furloughed in Liverpool, about one fifth of them in my constituency, and many of those jobs are at risk. They are in the visitor economy and the tourism sector and will be at risk if furlough ends.

One of my main asks of the Government is this. There are aspects of this industry that simply cannot go back to work or life as normal, such as the events industry and production, including sound and light production, which are huge in my constituency. They cannot go back to normal. The arenas and theatres are not open, and even if they do open, they cannot make money because of social distancing.

[Greg Clark]

I am grateful to the hon. Lady for giving way. I have been a regular visitor to her city over the years, and anyone who goes there will have a wonderful experience. The tour operator and travel agent sectors, both inbound and outbound, conform to exactly what she described. It has not only been difficult for them to conduct business. It was impossible to furlough many members of staff because they had a lot of work to do, taking calls from customers who wanted or needed to cancel bookings. Does she agree that we need to recognise the nuances and differences within the industry, while celebrating the return of visitors to many of our cities, towns and villages?

[Maria Eagle]

The right hon. Gentleman is correct. Some organisations would have furloughed if they did not have so much work to do, not that it was necessarily productive work, in the normal sense, that would make money for the company. He is right to identify that issue.

If I have one ask for the Government, it is not to treat these industries in a one-size-fits-all way. When furlough ends at the end of October, parts of the visitor economy and tourism sector—the things that attract people to Liverpool—will still not be able to go back to business as usual or work at all. These are fundamentally sound businesses. Our events industry is brilliant, and it will be brilliant again when social distancing has gone—it will stand on its own two feet and make money—but it will not be there if the Government do not do something beyond the end of furlough to ensure that these fundamentally sound businesses still exist.

Once gone, these businesses will not come back. Their work will simply be done by other organisations in Europe and elsewhere, and we will lose the advantage that we have in lighting and sound production for gigs and tours. That will not be there anymore, and it will not be making money for UK plc. Our visitor and tourism economy will not be able to attract the people it has done from overseas to our shores in future if those industries are not there.