Tourism Industry: Devon and Cornwall

Stuart Andrew Excerpts

Wednesday 23rd November 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Gary, and I thank my hon. Friend the Member for Torbay (Kevin Foster) for securing this important debate to discuss the benefits of tourism to areas such as Devon and Cornwall. I am aware that my hon. Friend is committed to supporting the tourism industry in his constituency. In his previous role as a Minister, he engaged with my predecessor, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), on the importance of supporting its recovery.

My hon. Friend the Member for Torbay listed a number of reasons why it is good to visit Torbay and he has tempted me with a visit, which I hope to comment on a little later. I welcome the opportunity to discuss the strengths of Devon and Cornwall’s tourism industry in the wider context of supporting the tourism offer in other regions of the United Kingdom.

I am the Minister responsible for sport, tourism, civil society, youth and many other issues, so Members will understand that the issues I cover are many and varied. I hope that they will forgive me if that sometimes causes confusion. One day I might be talking about the World cup in Qatar, and the next day I might be where I am now, debating tourism in Devon and Cornwall. To follow on from my hon. Friend’s opening comments, I have to be careful not to mix up my speeches; I would not want to score any “scone goals”. I hope that when I visit my hon. Friend’s constituency next year, I will be able to come to a conclusion on whether cream or jam comes first.

Turning to the really important matters at hand, I want to outline the support the Government have provided to the tourism industry so far. I am aware that a large proportion of businesses in Devon and Cornwall—the English riviera, to be specific—still face challenges from the pandemic, in addition to rising energy costs, supply chain issues and the rise in the cost of living. The Government are absolutely committed to supporting businesses within our visitor economy, which is why last summer we developed the tourism recovery plan.

The south-west of England is a known popular tourism destination. Nearly one fifth of all trips made to England in 2019 were in the region, and that figure has been steadily increasing. That presents us with a huge opportunity to get visit numbers back to pre-pandemic levels by working on the plan’s objectives. As we know, people see the south-west as an attractive destination for a holiday, and the Government have been working to build the sector back post covid and have kept in close contact with stakeholders to ensure that everyone is on board. However, we continue to take into account the new challenges that have emerged in the past year when assessing the sector’s recovery.

The plan was a demonstration of our commitment to regain the UK’s reputation post pandemic as one of the most desirable tourist destinations in the world. We know that we already have an outstanding offer; we just need to advertise and inform people of that offer.

We also want to go further by enhancing what we already offer to tourists so that the UK can reach its full potential. First, we have set out six key objectives. These include the short-term objective of bringing back domestic and international visitor spend as quickly as we can, and the medium to longer-term objectives of supporting the sector to become more resilient, accessible, sustainable and able to benefit every region and part of the United Kingdom. It is about growth, but it is also about productivity.

Secondly, we have started to talk more about the visitor economy rather than tourism as an ecosystem of transport, culture, heritage and hospitality. We believe that that will help to demonstrate how the sector can both contribute to economic growth and support the Government’s objectives of levelling up.

Finally, improving our tourism offer in regions across the country will make us more attractive to potential visitors and event hosts, encourage a higher spend, reduce seasonality and promote investment. That will help to ensure that businesses chose the UK over other destinations, and I strongly believe that we must find ways to encourage international travellers to travel further than London and sample the excellent coastal tourism that areas such as Devon and Cornwall have to offer. This will no doubt bring benefits to such regions.

There are also other levers that the Government can pull. As announced in the Chancellor’s autumn statement, the Government are in advanced discussions on mayoral devolution deals with local authorities in Cornwall. I look forward to hearing about further developments on these plans, and I am sure that my hon. Friend the Member for Torbay is, too. There are also plans to help the tourism sector with targeted support to help with the cost of business rates over the next five years, worth more than £15 billion. The Government recognise that businesses are facing significant inflationary measures, so business rates multipliers will also be frozen in 2023-24, and ratepayers facing increased bills will have further support. I heard much about that at the UKHospitality reception yesterday.

My hon. Friend is right to point out that Putin’s war has caused the sector huge issues, which is why the energy bill relief scheme, announced earlier this year, is providing further support for businesses. As my hon. Friend will know, the scheme will provide support through the winter period, protecting businesses against excessive bills until March next year. A review will then be published that will consider how best to offer further support to exactly the types of hotels he mentioned. I will continue to have meetings with stakeholders and colleagues across Government to highlight the need for support.

Tourism is already a devolved policy area, but giving local regions more authority is one way to ensure that growth can be generated from the ground up. Members may be aware of Nick de Bois’ independent review into the structure and organisation of destination management organisations. It was published in August 2021, and the Government responded in July, including with an accreditation framework to streamline and improve the DMO landscape. That will enable more efficient and strategic DMOs, ensuring that they can bring out the best in their local tourism offer. We will also be piloting a funded partnership model in a region of England to be announced on Friday. We hope to use that to collect evidence to showcase the success of the proposed model and to enable it to be rolled out to other regions.

My hon. Friend rightly talked about short-term lets. Cornwall and Devon’s popularity as tourist spots is great for creating jobs and supporting businesses. However, I appreciate that not all of tourism’s impacts are welcomed by local residents. As my hon. Friend will know, there has been a sharp increase in short-term holiday letting in recent years, which has been driven by the rise of online platforms such as Airbnb. While the Government support the sharing economy and the economic benefits that it can bring, we are aware of a variety of concerns, such as the impact on the housing market and local communities. During my time as Housing Minister, I was lobbied extensively on that by my hon. Friend and many other south-west MPs.

To address the concerns and to look towards potential solutions for short-term accommodation, we first needed to hear from all interested parties, so we held a call for evidence between June and September. The evidence has helped us to understand the scale and nature of the short-term letting market in England and the benefits and potential problems it is causing in communities across the country, including in the south-west. It has enabled us to hear from stakeholders and other interested parties about how the sector could be improved. We are now in the process of analysing the near 4,000 responses and will look to provide an update to the sector soon about the next steps.

[Kevin Foster]

It is encouraging to hear of the scale of response. Does the Minister agree that this is not about tourism versus housing? Ultimately, the availability of housing is vital to ensure that there are staff for the tourism industry.

[Stuart Andrew]

I completely understand that point. I have done several roundtables on the issue and heard the problems that colleagues face in their constituencies. We will continue to work with colleagues in DLUHC to find a solution.

I will move on to international travel, which is an important piece of work. We are working closely with other Departments to bring back international travellers to at least 2019 levels as quickly as possible. As we know, that will promote growth and increase the UK’s market share of both visitors and spending. Part of that work includes increasing international visitor numbers and spend outside of London and the south-east.

We also want to focus on reducing the seasonality aspect of tourism in this country by increasing off-season visits in the way that my hon. Friend described. Recent figures from VisitBritain show that the visitor economy is heavily skewed towards London and the south-east, with London accounting for 43% of all international inbound overnight stays and 64% of all international visitor spend. VisitBritain has analysed the regional disparity, which compares unfavourably with our competitors in France, Germany and Italy. Nevertheless, I am aware that, for many tourists, a typical trip to the UK involves a visit to the capital, and it is rarer for people to make trips to the rest of the country.

There is a huge tourist offering in regional areas of the UK, and I believe that we should help support those areas to unlock their full potential. Earlier this year, VisitBritain ran a tourism campaign entitled “Welcome to Another Side of Britain”, which focused on encouraging visits to all parts of the UK, particularly those outside London, in order to spread the economic benefits. The campaign delivered a boost to the UK economy of over £190 million, and created more than 3,500 jobs. The marketing campaigns have been better able to disperse visitors into regions outside London, and I would like to see that continue. As part of the Cabinet Office’s GREAT campaign, VisitBritain will market internationally, with its “See Things Differently” strategy focused on the USA and Europe, as they have the highest propensity to visit and spend.

As my hon. Friend will know, tourism in Devon and Cornwall can be very seasonal, with a huge influx of visitors in the summer months. In 2019, 14% of the annual spend in overnight trips was in August alone, with just 5% of spending occurring in January. I know that the fluctuation in visitor numbers can have a huge impact on the ability of businesses to retain staff year-round. I also understand that it is a particular challenge this year, given that Christmas bookings have been slow and there is still some uncertainty about the future for some businesses. None the less, I believe that the changes that we, with the co-ordination of VisitBritain, will make to the structure of DMOs as they become local visitor economy partnerships will really help to boost tourism in Devon and Cornwall.

I thank my hon. Friend again for securing this important debate, and I can assure him that the Government and I are absolutely committed to supporting all areas of the UK’s tourism industry and to encouraging visitors to visit areas outside London that have an excellent tourism offer. This is our vision for the future and, by working with Members from all parties, that is what I hope we will be able to deliver. I look forward to continued engagement with the tourism sector over the coming months, and I promise that I will be a champion of its cause within the Government and will work with my hon. Friends.

Question put and agreed to.