Tourism: Covid-19

Simon Jupp Excerpts

Thursday 10th September 2020 Commons Chamber

[Simon Jupp (East Devon) (Con)]

I thank my hon. Friend the Member for North Devon (Selaine Saxby) for securing this debate on the tourism industry. It is much needed and most welcome.

I am encouraged by the continued low level of cases of coronavirus in Devon, despite the number of visitors to East Devon, who provided much-needed cash flow into our economy. Exmouth, Budleigh Salterton, Sidmouth, Ottery Saint Mary and Topsham enjoyed summer safely, with people flocking to East Devon to lap up the sunshine, and to enjoy many culinary delights with a discount, thanks to the eat out to help out scheme from the Chancellor.

In fact, I did not manage to visit as many restaurants as I would have liked, as many were fully booked all week—great news for the businesses and, arguably, my waistline—and 202,000 meals were discounted in East Devon. Speaking to many people who work in hospitality on my travels, the scheme helped to show the wolf the door and to bolt it shut. I, too, regularly speak with tourism industry leaders, and they tell me that the scheme had an astonishingly good reception from businesses in Devon, some of which were cynical at the start.

Devon is not just famous for food; it is also our beautiful countryside, rolling hills and stunning cliffs. However, our tourism industry still faces a cliff edge that few want to see. It is estimated that about £2.2 billion of anticipated tourism business turnover has been lost in the south-west in the first six months of this year. If we also consider the tourism supply chain, that is a further loss of £468 million to our economy. Business turnover has halved. Only 30% of businesses in the south-west anticipate that they will survive beyond summer 2021. Let us give them hope and optimism, and reassure them that we are on their side every step of the way.

The temporary 5% reduced VAT rate, supporting tourism, hospitality and leisure businesses, comes to an end on 12 January next year. That measure is helping businesses to survive, as they stick to the guidelines and adjust their businesses to keep staff, customers and guests safe. I understand that the Treasury keeps taxes under regular review, and I sincerely hope that it is reviewing this measure and considering an extension. The measures put in place by this Government undoubtedly saved thousands of jobs across the south-west, but sadly our tourism industry is not out of the woods yet and further support is needed to help it to survive and thrive. We simply cannot afford the alternative.