Tourism: UK Economy

Lord Lee of Trafford Excerpts

Tuesday 9th November 2010 Lords Chamber

Asked By

[Lord Lee of Trafford]

To ask Her Majesty’s Government what is their latest assessment of the contribution of the tourist industry to the United Kingdom’s economy.

[Lord Lee of Trafford]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as chairman of the Association of Leading Visitor Attractions.

[Baroness Garden of Frognal]

Tourism has huge potential for growth. It supports 1.5 million jobs with visitor spend of nearly £90 billion each year. Deloitte estimates a direct and indirect value to the UK economy of £115 billion and suggests that tourism could be the fourth fastest growing sector over the next 10 years, indirectly and directly supporting a total of nearly 3 million jobs by 2020.

[Lord Lee of Trafford]

I thank my noble friend for her Answer and welcome her to her first tourism Question. In a speech recently the Prime Minister said:

“Tourism presents a huge economic opportunity. Not just bringing business to Britain but right across Britain driving growth in the regions and helping to deliver the rebalancing of our national economy that is so desperately needed”.

That is all very laudable, but does my noble friend realise that tourism faces a double whammy? First, there is a 34 per cent reduction in the funding to our national tourist board, VisitBritain, and then—this has been referred to earlier—the abolition of the regional development agencies, which significantly supported many tourism projects in the regions, often on a match funding basis, and also supported the destination management organisations? There is no way that local enterprise partnerships will have the coverage or the resource to replicate this.

[Baroness Garden of Frognal]

My Lords, I thank my noble friend for his question and his kind words of welcome. I pay tribute to his expertise and to his support for the tourist industry. Some of the issues in this Question have been touched on already in the previous Question. The regional development agencies have made magnificent efforts to benefit the tourism industry, but they have been variable, with no two models alike. They are due to be wound up by March 2012 and we anticipate that, as their role recedes, the destination management organisations will be formed, to good effect, through existing local tourism support bodies. The future structure will be two-tiered, with Visit England providing public sector support in the transition period.