Tourism: Covid-19

Neil Parish Excerpts

Thursday 10th September 2020 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

It is a great pleasure to speak in this timely and important debate on tourism, and I thank my neighbour, my hon. Friend the Member for North Devon (Selaine Saxby), for securing it.

As we all know, tourism has been one of the sectors worst affected by covid-19, and I echo a lot of what my hon. Friend said. Naturally, the sector had to be closed down by the Government because of coronavirus, but it has been hugely economically affected. In the south-west, we have a large tourism sector that supports our region’s economy. Job losses will not be limited to hospitality. Significant losses will be felt in the food production and supply chains too, and of course, in rural areas, food, farming and tourism are intricately linked.

Despite an increase in staycations this summer and the help from Treasury, with the eat out to help out scheme, the furlough scheme and tax holidays, the tourism sector has still suffered huge losses because of covid-19. VisitBritain has collected data from across the country and estimates a minimum loss in revenue of some £68 billion for the tourism sector this year. According to a survey by the Department for Digital, Culture, Media and Sport in June, 92% of tourism businesses say that their revenue has decreased by more than 50%, and 62% say that they will not be viable businesses within six months. That survey was three months ago, so time is of the essence if we are to ensure that our tourism and hospitality businesses survive the winter. Due to covid-19 and the lockdown, our hospitality and tourism sector missed out on half the holiday season. Even now, about one third of businesses in our region can only operate at 75% capacity, so viability remains an issue.

So what can we do? The first and most important thing is to maintain the VAT reduction for the tourism and hospitality sector through to Easter next year at the very least, because that will encourage visitors and keep businesses going. The reduction in VAT to 5% has reduced outgoings for our businesses throughout the summer, and I think it is best that the Government continue giving that support, to help businesses to plan. Ahead of the autumn Budget, I ask Ministers to lobby the Chancellor to keep VAT at 5%. I also ask the Government to consider extending the business rates holiday beyond April next year. We have a very able and good Tourism Minister, but it will take the tourism industry some years to recover from these losses.