Domestic Tourism

Nigel Huddleston Excerpts

Tuesday 12th January 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

It is a pleasure to serve under your chairmanship, Mr Robertson.

I congratulate my hon. Friend the Member for St Austell and Newquay (Steve Double) on securing this debate. I know he works tirelessly on behalf of the tourism industry in Cornwall and, in his APPG role, of tourism right across the country, as well as of the broader hospitality sector, which was the subject of a debate here in Westminster Hall only yesterday, which he also participated in. I also thank other hon. Members who have contributed today; they are all consistent advocates for the tourism and hospitality industry, and I have had conversations with many of them previously.

Indeed, as my hon. Friend said, because of the advocacy for the sector in this place by the hon. Members who are present today and many more, the voice of the tourism sector has never been stronger in Parliament. That can only be a good thing, because today’s debate demonstrates the vital importance of the tourism industry to the UK economy and underlines just how strongly it is missed in these stretches of enforced covid closures.

I will start by echoing the contributions made by hon. Members about the economic contribution of the domestic tourism industry, and then talk in more general terms about what the Government are doing to support the sector. The tourism industry contributes well over £70 billion to the UK economy, and prior to this pandemic it employed 1.6 million people directly and more than 3 million—perhaps as many as 4 million—people indirectly.

In 2019, 41 million visitors travelled to the UK from overseas, creating many business opportunities and of course generating many jobs in every corner of the country in the process. And domestically, British residents took 99 million trips in England for leisure or business purposes, spending the best part of £20 billion. Indeed, buoyed by the positive momentum of previous years and Government interventions, including the tourism sector deal, the Discover England fund and other initiatives, we were looking forward to having a really booming domestic tourism industry as we entered 2020, but of course covid had different plans.

None the less, the Government acted quickly, straightaway from March last year onwards, and I appreciate the recognition of the Government interventions that has been expressed today. That action included introducing a variety of measures that particularly helped the sector; even though many of them were all-economy measures, they were particularly adopted by the tourism sector. They included the furlough scheme, the self-employed support scheme and a variety of loan schemes. Of course, on top of that there were the retail, hospitality and leisure grants, and the business rates holidays.

When the sector did open in July, we helped it further with a variety of initiatives, including tourism promotion campaigns and, of course, the VAT cut, as has been mentioned. And in the spirit of the “Enjoy Summer Safely” and the “Escape the Everyday” campaigns, I was delighted to be able to visit my hon. Friend the Member for St Austell and Newquay in his constituency. In fact, I managed to get around all six constituencies in Cornwall, and I very much appreciated hearing from a number of local stakeholders and businesses who were very clear, honest and frank about what they needed; I always appreciate such communication from the sector. I visited some really iconic and truly global destinations, such as the Eden Project. Also, alongside all the marketing work, VisitBritain introduced a “We’re Good To Go” standard last year and over 41,000 businesses signed up for it, showcasing the hard work that venues put into reopening in a secure way.

However, although the summer may have gone well for some—I understand that particularly in the south-west there were good average daily rates and good occupancy rates—that was by no means consistent across the board. In particular, our city centres and other urban areas are still struggling with incredibly low occupancy rates.

So, covid forced us to adapt our approach in the late summer and autumn of last year, but unfortunately we had to introduce more restrictions later in the autumn. I know that those restrictions, which hampered domestic tourism considerably, have placed further strain on businesses.

However, the Government acted, and will continue to act, to help to mitigate those pressures. In response to November’s national lockdown and the local measures that were introduced at that time, the Chancellor provided further support for businesses and individuals, including extending various Government-backed loans, the furlough scheme and the self-employed scheme, and in particular the Government introduced new local restriction grants.

In light of the new national restrictions, last week the Chancellor announced one-off top-up grants for retail, hospitality and leisure businesses, which are worth up to £9,000 per property, to help businesses through to the spring, plus a further £594 million discretionary fund to support other impacted businesses. My hon. Friend mentioned those entities, businesses and sub-sectors that have perhaps fallen through the cracks. I encourage all of them to apply for these discretionary funds. There was an existing discretionary grant fund, which has been topped up recently. I also encourage—indeed, I implore—local authorities to be particularly sympathetic to those sub-sectors within the hospitality, leisure and tourism sectors that hitherto have not been able to access such grants. Supporting them is precisely what these grants are for.

[Steve Double]

I welcome the fact that the Minister has made that point, because there has been a concern that sometimes councils have been too rigid in using their discretion regarding these discretionary grants, and many businesses have not been able to access them. So, I join him in encouraging local authorities across the country to be flexible and to use the discretion that the Treasury has given them in applying those grants, to ensure that they are accessible to the businesses that really need them.

[Nigel Huddleston]

Absolutely—I agree with my hon. Friend. As I say, the very clear message from myself and from this Chamber today to those local authorities is, “Please be very generous with those grants for those sectors that have not been able to access support.”

Of course, the details of the latest grant schemes will come out very shortly. There will be swathes of the hospitality, leisure and tourism sectors that will be clearly identified specifically for those grants; as I have said, they are for retail, hospitality and leisure. Large swathes should be covered. However, regarding those sectors and sub-sectors that are not covered already, I really hope that they will now be covered. I would like to see as many parts of the country covering those sectors as possible.

With the vaccination campaign under way, the Government will stand beside tourism through the pandemic’s finishing straight. Of course, we all know that now is the time to listen to the sector’s priorities for recovery, and to incorporate them into our thinking. I place on the record my deep thanks for the many stakeholders who have contributed, through the Tourism Industry Council and many others, and through their MPs, to help us develop the recovery plan for the sector.

In the short term, that means that we will allow businesses to reopen as soon as possible. We also want to ensure that where businesses are open, they can do so as profitably as possible, which also means stimulating consumer demand through marketing campaigns and removing pandemic-related barriers on travel as soon as it is safe to do so. My hon. Friend the Member for St Austell and Newquay mentioned the important role of marketing both domestically and for inbound tourism, and that is exactly what we will be doing.

Further down the line, it is about making sure that we build back better. While we must first focus on assisting businesses through the immediate period, we have not lost sight of our long-term ambitions for the sector. We want to future-proof the tourism sector and are determined to play our part in developing a more sustainable, innovative and data-driven tourism industry. We will continue to engage with tourism stakeholders, including the all-important destination management organisations, which my hon. Friend the Member for St Austell and Newquay Gentleman also mentioned; they play such an important role.

As we look forward to how we can effectively support the sector through covid and beyond, we will continue to develop the tourism recovery plan, which I mentioned, and we will be working across Government Departments in that. Of course, my hon. Friend the Member for St Austell and Newquay knows from yesterday’s debate that I work very closely with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), and the Department for Business, who oversee the pubs, bars and restaurants side of the hospitality sector. It is a good thing that we have multiple Ministers advocating this sector, it all helps in the discussions that we have with the Treasury, who, I am sure, are listening to today’s debate.

On that line, my hon. Friend the Member for and St Austell and Newquay and others have voiced certain requests, for which I certainly have a lot of sympathy. With the VAT proposals, of course, I understand the need there—we are in discussions with the Treasury, which has already extended the VAT scheme once. With the loan schemes, changes have already taken place. I think the fact that the loan schemes have changed once, and the fact that the VAT scheme has already been extended, show that the Treasury is listening, and that is why debates such as today’s are always so useful.

I can assure my hon. Friend that the Treasury is listening; we are in constant dialogue and I appreciate all the lobbying work that the sector is doing, putting forward strong evidence to argue the case as well, which is very much appreciated. The fact that the sector has been so open with providing information and data in realtime has really helped to inform the Government’s decision making over the last few months as we have been dealing with the covid crisis. In fact, they have been extremely open, often giving information that otherwise would perhaps be very confidential and sensitive, and we really appreciate that openness. It helps us to make realtime decisions.

My hon. Friend the Member for St Austell and Newquay also mentioned the importance of the longer-term programme for the issues of seasonality, the perennial issue of productivity and, indeed, concerns about the perception of the industry, which I know we all fight against. This industry is a fantastic sector. I have worked in it; he has worked in it for a long time. There are very fulfilling careers in this sector. We need to ensure that it is promoted and respected in the way that it should be.

I can assure hon. Members that the Government overall are listening. I believe the voice of the sector has never been louder and stronger, and I absolutely commit to continuing to work with all stakeholders and all colleagues to make sure that we further support our domestic tourism industry and put it on the pedestal that it deserves.

Question put and agreed to.