Tourism

Lord Palmer Excerpts

Thursday 27th January 2011 Lords Chamber

[Lord Palmer]

My Lords, I still find it a little strange no longer to be the only Lord Palmer in this House. I have never before received so many Christmas cards, but it gives me enormous pleasure to congratulate the noble Lord on his thought-provoking maiden speech, which was delivered with distinction and fluency. He has long been a prominent member of his party and I am sure that we will all benefit from his interventions in the years to come. On behalf of the whole House, I congratulate him on a truly splendid performance.

I, too, congratulate the noble Viscount on introducing his first debate and for his comprehensive view of the United Kingdom’s tourism industry. I concur with everything that he said. I also congratulate him on attracting a record number of maiden speakers, pro rata, in this debate, which only goes to show how strongly Members of this House feel about this subject. Back in 1995, I had the privilege to lead a debate on the arts and heritage, which then attracted a record number of maiden speakers, who included an Earl, a Viscount and a noble Lord from these Benches. Sadly, such an occasion is no longer possible.

I must declare an interest, because I open my home and gardens to the visiting public. As such, I am very dependent on a vibrant tourism industry. Sadly, our income from tourism has recently fallen drastically—20 years ago, I used to be relatively content with 12,000 visitors a year; last year we were lucky to attract a little more than 5,000. It does not take a financial genius to work out what a sizeable drop of income that represents. This affects not only our income but that of the local economy in the sparsely populated area of the Scottish borders, which during the summer and indeed the winter months—with shooting, for example—is so dependent on tourism. The noble Lord, Lord Gardiner of Kimble, made that very point, particularly with regard to the West Country.

In my small capacity as a tourist attraction operator, I employ five full-time people and a further 15 part time. I believe that due to our repeat business which we are fortunate to experience, we have a product worth selling, but we are up against all the odds, not least of all the price of petrol, the increase in VAT and fierce competition from overseas. If one looks at the travel pages in the daily press, in theory—I emphasise, in theory—one can go to Malta, for example, for £299 per person, all inclusive. I repeat, all inclusive. That includes flights, board, lodging and all drinks for seven nights. A first-class open rail ticket from King’s Cross to Edinburgh now costs nearly £400. That is simply for one journey.

I know of one noble Lord who visited my home, among others in the Scottish borders, whose total bill for the week was well over £2,000. I confirmed this with him only last night. How can visitor attractions in this country possibly compete with what is on offer overseas?

I wish to concentrate on the grotesquely unfair tax—air passenger duty or APD. It is an utter myth that this is an environmental tax, given that private planes and cargo planes are exempt. The one group of people who really could afford APD are those with the luxury of owning a private plane or a part-share in one. Holland and Belgium have recently abandoned their equivalent, realising the damage that APD has done to their economies. Meanwhile, in the past six years, APD in this country has risen by a staggering 325 per cent. London is far more of an expensive destination than all our rival European cities, especially for those coming from China, India, Australasia and Russia. Ireland has just announced that its levy will be cut from €10 to just €3. When you compare that with a levy of £85 for someone travelling in economy class to Ireland from the United Kingdom, it makes a complete mockery.

Not unnaturally, more and more travellers living in the regions are increasingly choosing to fly long haul via Amsterdam, Paris or Frankfurt rather than Heathrow, in order to avoid this tax. Her Majesty's Government have announced that they are looking at APD and I sincerely believe that all these points must be taken on board and action must be taken as soon as possible.

One of my pet hates about tourism in the United Kingdom is the lengthy queues at immigration desks on entering this country, especially early in the morning when only a small number of desks appear open and a vast number of passengers are arriving after a long and exhausting overnight flight. That is so unwelcoming and surely it is a problem that could be so easily rectified. I urge the Minister to take this on board. The noble Viscount and others mentioned the forthcoming Royal wedding and next year's Olympic Games. The results of the review of the APD must be in place well before the first of those two important events.

This country has so much to offer and this is such a wonderful opportunity. It must be grasped now—I emphasise now—before, indeed, it is too late.