Seaside Towns (Regeneration)

Simon Hart Excerpts

Wednesday 8th December 2010 Westminster Hall

[Anne Marie Morris]

I certainly agree, and that well-made point reiterates that made by my hon. Friend the Member for Hove (Mike Weatherley).

The value of tourism is enormous. Members have mentioned several figures, but when I last looked at the issue, the prediction was that tourism would be worth £180 billion in this country by 2020. By that point, it will also be responsible for providing 2.89 million jobs, which is phenomenal. That would make a big difference to the current parlous state of the economy.

I represent part of Devon, which has 5.3 million visitors each year. That accounts for 7% of the Devon economy, which is well above average. In Teignbridge—the small heart of the part of Devon that I represent—32% of the work force are involved in tourism in some way or other. That is a very high figure, but it is not out of line with many of the figures that hon. Friends have mentioned.

Help is needed, because tourism is valuable for the growth of our economy and the recovery, but we need to identify how we make that help available, as many hon. Members have said. Perhaps I can briefly mention the key seaside towns in my constituency to help us see what the right solutions might be.

Dawlish Warren is a huge success story, and I am pleased about that. We have 800,000 visitors a year—on a good day, there are 20,000, which is a significant number. Why do we get those visitors? We have some excellent blue flag beaches and 505 acres of nature reserves, which attracts an interesting mix of tourists. However, we face the challenge of erosion, which is slowly pulling the beach back. As many hon. Members have said, the ability to solve such problems is not, dare I say it, in the gift just of this Minister, and I am pleased to say that I have had favourable responses on these issues from some of his Front-Bench colleagues.

Teignmouth is beautiful. It is a quintessential Victorian seaside town, but it, too, has its challenges. It has an ageing pier. It would be lovely if some of the suggestions made about lottery funding before the election could become a reality, because that could help. The town also has an ageing fish quay, which could receive EU funding and input, but those are proving quite elusive, and help from the Government in enabling seaside towns to make the most of EU opportunities would be extremely welcome.

Dawlish, which is a regency resort, is best known for its black swans. Jane Austen also stayed in the Strand, which is the main street running through the town. In answer to the point made by my hon. Friend the Member for Blackpool North and Cleveleys I would say that the big society is here in seaside towns. All three communities that I have mentioned have put together their own plans. They are well supported by the local community; there is not a great division. Indeed, the Dawlish plan is today on the Strand, ready to be inspected. What they need, having come up with the plan, is help with the solutions.

Clearly, No. 1 is marketing. I must declare an interest, because I am a fellow of the Chartered Institute of Marketing, and the issue is close to my heart. One of our concerns is that, while we need the big society, with communities doing their bit, we also need an appropriate framework and strategy, and a toolkit for making tourism work, and marketing it, as my hon. Friends the Members for Hove and for Blackpool North and Cleveleys were saying earlier. South West Tourism is the body that provides that guidance and framework at the moment in my part of the world. It will be disbanded in 2011 because it was under the aegis of the regional development agency, which clearly will not survive. What will replace it is an issue that is dear to my constituents’ and my heart. VisitEngland and VisitDevon provide some help and assistance, but they do not go to the heart of the need.

We need to grapple with the question of what the target market for tourism is. As hon. Members have articulated, the days of the bucket and spade brigade have declined, because those people are going to sunnier climes where they can guarantee the weather, and it is cheaper because they do not have to pay for entertainment when it is raining. We must think about not just social and cultural tourism, which are important, but those people who no longer have children at home—the so-called empty nesters—who are looking for a different type of holiday. They may want to combine a holiday across seaside resorts and rural sites. We need to think about what the target market is and how we segment it— by the type of holiday that people want to enjoy, or by geography? We need such a strategy, because otherwise all the efforts made locally will be fighting against each other. That has been one of the problems to date. In Dawlish the community has got together as a group to ask, “What do we do about our brand? What does Dawlish stand for? How could we market ourselves, together with Teignmouth, and perhaps some of the other destinations out on the moor?” Marketing is a key thing, and that is clearly one of the solutions.

The second issue relates to regenerating not just the housing stock but the fabric of the landmarks in the relevant communities. I have referred to our pier. I should love to find some money, perhaps from the lottery, to sort it out. One of the challenges with refurbishing seaside towns is VAT. VAT on new build, which is not really appropriate in this case, is zero-rated. However, we shall feel the full weight of the 20% rate next year. Would not it be wonderful if, for that type of regenerative building, the VAT rate could be 5%? I know that that is not in the Minister’s gift, but it is perhaps in that of some of his colleagues.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

My hon. Friend will be aware that we are one of only six countries left in Europe who charge double figures for hotel accommodation. The 21 who do not are all reporting increased turnover, increased tax take and an increased ability to create jobs. Does my hon. Friend agree that our Government should seriously consider that?

[Anne Marie Morris]

I certainly agree. The hon. Member for Torbay (Mr Sanders) has raised that matter over the years. As my hon. Friend says, the rate is much lower across the continent. France has just brought it down to 7%. We need to look at that issue.

I suggest also that the Minister should consider business rates. They are the bugbear of many small businesses. Might we conceivably consider enabling communities to reinvest the business rates that are charged back into the community, the small businesses, and particularly tourism, which, certainly in my constituency, makes up a large part of the small business?

--- Later in debate ---

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I shall keep my comments brief, Mr Crausby, and, if hon. Members do not mind, turn their attention to Wales for a short moment, in the full understanding that some of what we have been discussing this afternoon is devolved; the issues are common to seaside towns throughout the UK.

There are a few areas on which I should like the Minister, if possible, to comment, and reassure us. In my constituency we have 10 seaside towns, and no two are the same in their complications and economic and environmental circumstances. First, national parks are without a shadow of doubt a great asset, to be protected, and essential for a successful and effective tourism industry. However, there is a feeling, at least in my part of the world, that national park planning departments are a barrier to investment, progress and individuals who want to expand their tourist industry. It would be encouraging to hear from the Minister whether consideration will be given to merging in some way the local authority and national park planning functions, to minimise the chance of complications, which inevitably lead to the rejection of perfectly reasonable and positive planning applications, to the detriment of the local economy.

Secondly, I want to raise a planning-related matter—it has been mentioned before, but I want to put it in the specific context of agriculture: that is ensuring that the people on the fringes, not necessarily in the seaside towns, can diversify their agricultural businesses in a way that benefits the overall tourism attraction of the area. That issue is common to national park planning applications and to local authority applications.

[Mr Mark Williams]

Does the hon. Gentleman agree that in a Welsh context, the planning experience he alluded to has hampered the development of agri-tourism, food tourism and green tourism, which we in west Wales are uniquely placed to develop fully?

[Simon Hart]

The hon. Gentleman is completely right. His constituency is only a few miles up the coast from mine and I recognise his concerns.

My third and penultimate point is about road and rail infrastructure. Of the 1 million international visitors to Wales, who have brought in £321 million in the recent past, a significant proportion—92%—made their journey to Wales in a car, but once people get as far as about Swansea it is almost impossible to travel any further west with any degree of comfort. It is even more difficult on a train. That is a subject for a future debate, when we will discuss the electrification of rail lines. We are not making things easy for the tourism industry in the west of Wales in that respect.

Finally, for the sake of brevity, let us not lose sight of the fact that although tourism is the subject of this debate, in my part of west Wales at least, coastal town regeneration is just as dependent on other industries as it is on tourism. To take the Milford Haven waterway as an example, in that location, there are two oil refineries and two gas terminals, and the biggest gas-fired power station in Europe is under construction. The inward investment to those enterprises is vital not only for the people who are immediately connected with them. The surrounding tourism industry and economic environment are linked to large-scale industrial investment just as much as they are to tourism. We must not lose sight of that. This is not a case of either/or; it can be both. I hope that in the Government’s proposals, those few points are taken into account.