Seasonal Hospitality Businesses in Coastal Areas

Richard Foord Excerpts

Wednesday 3rd June 2026 Westminster Hall

[Richard Foord (Honiton and Sidmouth) (LD)]

It an honour to serve with you in the Chair, Mr Stuart. This debate on coastal hospitality has come just at the right time—just before the summer holidays. While many might be thinking about relaxing, the prospect of a visitor levy or tourist tax represents real concern for the hospitality industry, not least in my east Devon constituency. It is sobering news for many in the industry who depend on the summer months to turn a decent profit for the whole year round.

Before I dwell on the tourist tax, I will talk for a moment about two of my constituents, Martin and Shelley from Seaton. In 2016, they purchased a small chalet park in east Devon, which is open for seven and a half months of the year. Despite investing their life savings in the park and working full time, they are concerned that their future livelihood will be wiped out by the unintended consequence of leasehold legislation. We all know that leasehold legislation is rightly required to crack down on rogue landlords and rogue property management companies, and to prevent them from exploiting relationships with tenants, but it is not designed to capture chalet parks. However, my constituents find that under the legislation their chalets may be classed as long leases, subject to the ground rent cap. They fear being caught in the lease extension problem: when the leases expire in about 40 years, they will have to issue an extension, but then they will be able to charge only a peppercorn rate. They are concerned that the very modest park fees they charge, which the current lessees are very happy with, will not be sufficient to sustain the business. The Government should recognise that their leasehold legislation is catching people who were not intended to be caught by it.

Let me turn to the tourist tax. Many young or part-time workers at holiday parks and hotels depend on seasonal work opportunities in our local coastal hospitality industry. Local businesses such as Forest Glade holiday park in Kentisbeare support local jobs, local suppliers and the wider rural economy. I pay tribute to the hon. Member for Isle of Wight East (Joe Robertson), who talked about the visitor levy as the wrong policy at the worst possible time; he has done us a favour by securing this debate. I, too, implore the Government to engage with coastal communities and hospitality, understand their opposition to the measure and abandon the tourist tax before the inevitable economic harm hits our areas.