Tourism: Covid-19

Jim Shannon Excerpts

Thursday 10th September 2020 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

I beg to move,

That this House has considered support for the tourism industry after the covid-19 lockdown.

Tourism is so much more than just going on our summer holidays. I would like to thank everyone in the Chamber today who is clearly aware of the huge part the tourism industry plays in the whole UK economy, particularly in beautiful coastal communities such as mine in North Devon, where in places it accounts for 60% of jobs and income.

I applied for this debate many weeks before the Chancellor announced his excellent supportive measures on 8 July. The Chancellor acknowledged that the sector accounted for over 2 million jobs and 150,000 businesses, and while we cannot save every job or every business, he did commit to do whatever it takes. Indeed, his statement brought a tear to my eye in that so much support was coming forward: £4.6 billion in direct support through the VAT cut and the incredibly successful eat out to help out scheme, on top of the coronavirus job retention scheme, the business rate cut, grants, loans and so forth. There is no doubt that support has been forthcoming, and the three winter scenario so widely discussed back in May does now seem a dim memory.

With winter now very much on the horizon again, however, has the sector seen enough of a bumper season to be secure through the cold, dark, stormy winter days ahead? Initial data reports suggest not, with spending on national UK tourism down 50% in August 2020 versus August 2019, hotel spending down 63% and even self-catering down 8%, while yesterday’s limit to six people meeting will badly impact tourism businesses dependent on larger gatherings.

[Jim Shannon (Strangford) (DUP)]

Unfortunately, we do not have much time, but I will say this quickly. The council area I represent as the constituency MP is Ards and North Down, and the key core of the economic drive of that council is tourism, which is so important. Does the hon. Lady agree that where such councils have responsibility for the economic drive—and tourism is up there—those councils need help?

[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.

--- Later in debate ---

[Jim Shannon]

One of the important things about the coach companies is that many of them are family owned. There are three or four in my constituency and they are all family owned. The impact on those families has been dire, so does the hon. Gentleman agree that that is where the help is needed?

[Dave Doogan]

I agree entirely with the hon. Member. The nature of the business is absolutely exceptional, with its organic growth and investing to ensure that passengers get the absolute best experience. These businesses have paid handsomely into the Exchequer for decades, while never troubling the taxpayer for Government support. These are the businesses that the Government must now stand behind—if not for them, then for the 40,000 people employed in the coach sector. And if not for them, then for the £14 billion generated for the UK Exchequer every year by the sector. There is nowhere left for the Government to hide on this issue.

I would like to share with the Minister the example of one such company in my constituency, Black’s of Brechin. It has been family owned across the generations, proudly operating a modern fleet of luxury coaches that reflect very well on our outstanding tourist offer in Angus and more widely across Scotland. The managing director, Robert Black, was the first Angus business representative to contact me at the start of the pandemic. Black’s is a business with a focus not only on daily operations but on the strategic, looking for the threats and opportunities lying ahead. Not long after that phone call, all opportunity for Black’s of Brechin and every other coach operator up and down these islands evaporated, being replaced by overwhelming risk.

With lockdown, tourism stopped overnight. There were mass cancellations of coach tours, wedding hires, golf trips and football hires. Every single booking was cancelled, and although the tourism market theoretically reopened in July, that will not facilitate a recovery for the coach sector any time soon. What Robert Black said to me in that phone call in March has come to pass. He said that the coach industry would be the first to be hit, that it would be one of the hardest hit and that it would likely be the last to recover. I would add that without Government support, many operators will almost certainly not recover, although as we have heard, these are viable businesses. There is scarce time left to save the coach sector. The industry is in the midst of an 18 to 24-month winter, and furlough is due to end in the coming weeks. The Government told us that they would do “whatever it takes”. The fiscal levers rest here in Westminster, and the Government must act now.