Tourism Industry

Noah Law Excerpts

Thursday 20th March 2025 Westminster Hall

[Blake Stephenson (Mid Bedfordshire) (Con)]

I beg to move,

That this House has considered Government support for the tourism industry.

It is a pleasure to serve under your chairmanship, Sir Edward, and to introduce this debate during English Tourism Week, when people across the country will be celebrating all the fantastic tourism attractions that form part of the fabric of so many of our communities. They range from Land’s End to John O’Groats, from the Needles on the Isle of Wight to the neolithic site of Skara Brae in the Orkney Islands, and from the Titanic museum in Belfast to the Roman ruins of Colchester. Across the length and breadth of the United Kingdom, we are fortunate to have unique and interesting tourism attractions. We have them in, I feel reasonably confident in saying, every constituency and every corner of the country.

Tourism is a vast industry. It is worth £145.8 billion to the UK economy, which is equivalent to 6.5% of UK GDP. Tourism supports 3.8 million jobs, and 1.6 million people are directly employed in tourism. Some 328,000 businesses, representing 6.6% of all businesses in the UK, are tourism businesses; 76% of those are microbusinesses. Tourism is the UK’s sixth largest export earner and it feeds into a wide tourism ecosystem, supporting local high streets, hospitality and a wide range of other industries.

This Government have an ambition for our country to reach 50 million tourism visitors a year. It is an ambition that I support, and I hope that in this debate we can examine the role that Government and we in this place can play in supporting tourism nationally and backing our tourism economies locally. I am aware that, as the Member of Parliament for Mid Bedfordshire, I might not be the most obvious voice for tourism in this place. Bedfordshire has been rather left behind by the tourism economy. We are one of the last counties in England without an official local visitor economy partnership. That is despite fantastic attractions such as English Heritage’s Wrest Park, Whipsnade Zoo and Woburn Safari Park—I refer Members to my entry in the Register of Members’ Financial Interests following the safari park’s kind hosting of a roundtable and tour of the park for me earlier this year. We also have Center Parcs Woburn Forest, the Wyboston Lakes Resort, Luton Hoo and so much more.

Anyone who watched my debate last year on tourism in Bedfordshire—I am glad to be debating with the Minister on tourism again—will have heard me extol the virtues of Bedfordshire as a place to visit. However, despite those fantastic attractions, our county has a domestic tourism economy of just £250 million and an international tourism economy of just £100 million. We are not a remote county; we have a major international airport, a motorway and a direct rail connection. Bedfordshire’s tourism economy has so much potential to be a key part of growing the economy.

Where Bedfordshire has lagged, it now can lead. The Government have already thrown their weight behind East West Rail, which has the potential to make a real difference to local tourism, setting our county up as a central piece of an Oxford-to-Cambridge growth corridor that is full of growing businesses and, more importantly for this debate, attractions that embody what it is to be an English county. Like many other colleagues, we have fantastic opportunities in Bedfordshire to deliver new attractions that will boost our tourism economy. The Bedford to Milton Keynes waterway park is one such opportunity, and would be capable of attracting 750,000 visitors, creating 1,000 jobs and bringing in an extra £26 million for our local economy. I will continue to bang the drum to get that delivered as quickly as possible.

The other major tourism project in my constituency is the game changer. Looming like a monstrous shark off Amity Island, a prehistoric predator off the coast of Costa Rica or an Italian-American plumber in the Mushroom Kingdom, the Universal Studios theme park at Kempston Hardwick would transform the tourism landscape in Bedfordshire. Universal is a game changer for Bedfordshire, but also for the whole UK tourism economy. Getting it right represents a £50 billion economic boost, 20,000 new jobs and 12 million more visitors every year. This Government talk a good game on growth and on growing tourism, but the proof is in the pudding, and for this Government the pudding would have the words “Universal Studios Bedfordshire” written on it. I sincerely hope that they will get this over the line.

With or without Universal, it has become clear that the support available from Government to promote our county is insufficient. Getting Bedfordshire an LVEP would help—indeed, getting an LVEP in all counties that are lagging behind would help enormously—but we must also ensure that tourism is a central consideration of English devolution. We must ensure that there is proper prioritisation in the minds of new mayors and proper funding from local government to allow our regions to shout about all the fantastic reasons to come and stay awhile.

If the Government want to get tourism right, they must provide that funding centrally, and resist the urge to consider local tourism taxes as a silver bullet. For Government, local taxes have the allure of a problem handed down to devolved areas to handle, but they will make the UK even more uncompetitive, introducing additional costs and confusion for holidaymakers at home and abroad.

[Noah Law (St Austell and Newquay) (Lab)]

I welcome the hon. Member’s bold efforts to bring Bedfordshire’s tourism economy to the fore. In Cornwall, our tourism economy is already very much at the fore. Does he agree that it has been a mistake to see the industry as a sort of be-all and end-all in places such as Cornwall? Given the seasonality of the employment, the lack of infrastructure and the many opportunities beyond, it must be recognised that it can sometimes be a mistake to bed tourism so centrally into our growth plans.

[Blake Stephenson]

It is important that local economies are balanced, and I recognise that in some parts of the country it feels like the economy is imbalanced. Perhaps there are communities suffering from too many tourists, and I am sure that hon. Members may talk about that in the context of Cornwall. I thank the hon. Member for his intervention; it is important that we have balanced economies throughout the United Kingdom. However, tourism in the United Kingdom has the potential to grow without the negative consequences that Government Members may wish to talk about.

The cost of tourism is already far too high. Evidence from the World Economic Forum puts the UK 113th out of 119 countries on price competitiveness. Our visitor visas are uncompetitive internationally: a 10-year visitor visa costs £962, but the United States charges Chinese visitors just £135 for a visa of the same length. Repeat visa applicants face a bureaucratic process that requires them to resubmit their biometrics, which is often a complex process for visitors from rural areas, who may need to travel significant distances to provide their biometrics. Lower-cost, longer-lasting and simpler visas will help to make the UK much more competitive as a tourism destination.

Our international price competitiveness was already low before the Government hiked the price of electronic travel authorisations by 60%—a policy that they admit will cost the UK just over 100,000 visitors every year. That is 100,000 fewer people staying in the accommodation sector, eating and drinking in our pubs and restaurants, and enjoying everything great that Britain has to offer and recommending a visit to their friends back home. The Home Office estimates that that means a cost to the UK economy in the region of up to £734 million over five years—in the same breath as the Government talk about being a Government for growth and growing the tourism economy to 50 million visitors per year.

If we are to achieve the Government’s goal of 50 million visitors per year, we need to make the UK more attractive to visitors at home and abroad, and less attractive as a source of revenue for the Treasury or local authorities. The evidence shows that for every 1% decrease in the cost of visiting the UK, the earnings of the UK’s inbound tourism economy increase by 1.3%. For every £74,300 increase in tourism revenue, a new full-time-equivalent job is created in tourism. Tourism is a growth-generating machine that the Government hold the keys to, but it is a machine that needs more careful maintenance than it is currently getting from this Government. Since the general election, businesses in tourism and its supporting industries have faced significant Government-imposed barriers to growth. Most notably, the Government’s decision to tax job creation and business expansion has left many tourism businesses putting their future plans on ice. Tourism businesses were already struggling, with 19% reporting that they are either in survival mode or performing quite badly.

Profitability for tourism businesses is down. The decision to increase their employer’s national insurance, taxing them for creating jobs and helping to grow the economy, all while reducing business rates relief, will have a devastating impact on the industry. If our tourism businesses fall, the attractiveness of visiting the UK falls with them, and tourism businesses are already falling. Just this month we have seen a theme park in Wales closed, citing national insurance as a contributing factor. As I mentioned earlier, in Bedfordshire we hope to be in the business of opening theme parks, not seeing them slip away. We know that where tourism thrives, it benefits the whole of the local economy, from accommodation providers and high street shops to pubs, cafés, museums and restaurants.

When tourism succeeds and grows, it brings the whole of the local economy with it. When tourism fails, it puts at risk not just the future of UK tourism and the Minister’s growth plan, but the whole ecosystem that it supports. The great British pub is a staple of British culture and a key attraction for visitors to the UK. Pubs like The Bell in Woburn, The Oddfellows Arms in Toddington and the Star and Garter in Silsoe are a key part of what makes Mid Bedfordshire a great place to spend time. One in four pubs believes their future may be untenable, and the Government’s £500 million hit to the cost of our pubs doing business will leave at least some of our destinations without the great British pub, something that is so attractive to visitors. I believe that the Minister is earnest in his desire to see 50 million visitors come to the UK each year, but I hope he will appreciate my concern that we need to do more to ensure that there are thriving businesses here to provide things for those visitors to see and do.

I would like the Government to focus more on supporting our best visitor attractions, including the great British pub and the British high street. We must also ensure that the planning system protects and enhances our tourism offer. That means faster approvals for game changers such as Universal, so that we can continue to be a fantastic place for projects and investment, such as that proposed in my constituency. That will mean better transport infrastructure across the whole country.