Tourism Industry

Helen Grant Excerpts

Thursday 20th March 2025 Westminster Hall

[Blake Stephenson]

It is important that local economies are balanced, and I recognise that in some parts of the country it feels like the economy is imbalanced. Perhaps there are communities suffering from too many tourists, and I am sure that hon. Members may talk about that in the context of Cornwall. I thank the hon. Member for his intervention; it is important that we have balanced economies throughout the United Kingdom. However, tourism in the United Kingdom has the potential to grow without the negative consequences that Government Members may wish to talk about.

The cost of tourism is already far too high. Evidence from the World Economic Forum puts the UK 113th out of 119 countries on price competitiveness. Our visitor visas are uncompetitive internationally: a 10-year visitor visa costs £962, but the United States charges Chinese visitors just £135 for a visa of the same length. Repeat visa applicants face a bureaucratic process that requires them to resubmit their biometrics, which is often a complex process for visitors from rural areas, who may need to travel significant distances to provide their biometrics. Lower-cost, longer-lasting and simpler visas will help to make the UK much more competitive as a tourism destination.

Our international price competitiveness was already low before the Government hiked the price of electronic travel authorisations by 60%—a policy that they admit will cost the UK just over 100,000 visitors every year. That is 100,000 fewer people staying in the accommodation sector, eating and drinking in our pubs and restaurants, and enjoying everything great that Britain has to offer and recommending a visit to their friends back home. The Home Office estimates that that means a cost to the UK economy in the region of up to £734 million over five years—in the same breath as the Government talk about being a Government for growth and growing the tourism economy to 50 million visitors per year.

If we are to achieve the Government’s goal of 50 million visitors per year, we need to make the UK more attractive to visitors at home and abroad, and less attractive as a source of revenue for the Treasury or local authorities. The evidence shows that for every 1% decrease in the cost of visiting the UK, the earnings of the UK’s inbound tourism economy increase by 1.3%. For every £74,300 increase in tourism revenue, a new full-time-equivalent job is created in tourism. Tourism is a growth-generating machine that the Government hold the keys to, but it is a machine that needs more careful maintenance than it is currently getting from this Government. Since the general election, businesses in tourism and its supporting industries have faced significant Government-imposed barriers to growth. Most notably, the Government’s decision to tax job creation and business expansion has left many tourism businesses putting their future plans on ice. Tourism businesses were already struggling, with 19% reporting that they are either in survival mode or performing quite badly.

Profitability for tourism businesses is down. The decision to increase their employer’s national insurance, taxing them for creating jobs and helping to grow the economy, all while reducing business rates relief, will have a devastating impact on the industry. If our tourism businesses fall, the attractiveness of visiting the UK falls with them, and tourism businesses are already falling. Just this month we have seen a theme park in Wales closed, citing national insurance as a contributing factor. As I mentioned earlier, in Bedfordshire we hope to be in the business of opening theme parks, not seeing them slip away. We know that where tourism thrives, it benefits the whole of the local economy, from accommodation providers and high street shops to pubs, cafés, museums and restaurants.

When tourism succeeds and grows, it brings the whole of the local economy with it. When tourism fails, it puts at risk not just the future of UK tourism and the Minister’s growth plan, but the whole ecosystem that it supports. The great British pub is a staple of British culture and a key attraction for visitors to the UK. Pubs like The Bell in Woburn, The Oddfellows Arms in Toddington and the Star and Garter in Silsoe are a key part of what makes Mid Bedfordshire a great place to spend time. One in four pubs believes their future may be untenable, and the Government’s £500 million hit to the cost of our pubs doing business will leave at least some of our destinations without the great British pub, something that is so attractive to visitors. I believe that the Minister is earnest in his desire to see 50 million visitors come to the UK each year, but I hope he will appreciate my concern that we need to do more to ensure that there are thriving businesses here to provide things for those visitors to see and do.

I would like the Government to focus more on supporting our best visitor attractions, including the great British pub and the British high street. We must also ensure that the planning system protects and enhances our tourism offer. That means faster approvals for game changers such as Universal, so that we can continue to be a fantastic place for projects and investment, such as that proposed in my constituency. That will mean better transport infrastructure across the whole country.

[Helen Grant (Maidstone and Malling) (Con)]

I congratulate my hon. Friend on securing this important debate in English Tourism Week. Tourism in the fantastic county of Kent is worth around £4 billion per annum. It supports 77,000 jobs, and there is still unmet need. Does he agree that the reinstatement of Eurostar stopping at Ashford and Ebbsfleet would help the county to grow this vital sector further?

[Blake Stephenson]

That is a fantastic idea. I was travelling just yesterday on the Eurostar and thinking to myself how great it would be if the train stopped at Ashford and Ebbsfleet and passengers could get off, having come from the Netherlands, to savour the delights of Kent, a county that I know very well. I thank my hon. Friend for that intervention; it is a fantastic idea. Perhaps the Minister will have an update on what is happening with Eurostar.