Tourism: Covid-19

Tommy Sheppard Excerpts

Thursday 10th September 2020 Commons Chamber

[Tommy Sheppard (Edinburgh East) (SNP)]

The great city of Edinburgh, more than most, welcomes people from across the globe. Members will be familiar with our city’s wonderful arts festivals, but its year-round reputation attracts visitors all the time. Combined with that, the conference centre stimulates business tourism and, of course, the city is a gateway to the rest of Scotland.

So tourism and hospitality are vital for the city’s economy. Some 33,000 jobs depend upon it. So it is almost impossible to overstate the harmful effect that the public health restrictions due to the pandemic have had on that sector. Last year, 1.5 million people came through Edinburgh airport in July. This year, the figure was 170,000. Last year, more than 3 million people visited Princes Street in August; this year, it was less than a quarter of that number. Half of our hotel rooms were empty this summer. Our visitor attractions were down 90% and, of course, our venues and theatres remain dark.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

My hon. Friend is making a passionate defence of Edinburgh, but he will share my concern that our islands, such as the Isle of Arran and the Isle of Cumbrae, have also suffered particularly badly. Despite my pleas to the Chancellor, the requests for extra help for these islands have gone unanswered. Does he not agree that sometimes support is needed because it is a question of sustainability for our island communities?

[Tommy Sheppard]

Indeed I do and I shall come on to that. At the core of this dilemma is the fact that the essence of these industries—hospitality and tourism—is bringing people together. Social distancing is the antithesis of what these industries grew up for, yet they are going to have to try to manage the problem. Everyone understands the necessity and requirement for the guidelines to be enforced, nobody more so than those working in these industries. The question is how we can manage.

We have all seen firms in our cities and towns trying to operate with reduced capacity. I have seen it myself in my constituency. Last month, in Perthshire on a family holiday, I stayed at several hotels and ate at several restaurants, all doing their utmost to conform to the guidelines that are to be enforced and, indeed, taking pride in their ability to keep their customers safe.

Behind the brave faces, however, there is a deep and dark despair. It is the despair that comes from knowing that, at the end of a hard shift, more money has left their bank account than went into it, no matter what they do. The truth is, for pretty much all those businesses, those reduced capacity operations are unviable in the longer term, although they do two things: they postpone the date at which money runs out completely, because they slow the rate of loss; and, more importantly, they retain some jobs, and capacity and expertise in the sector, so that when the restrictions change, they can spring back.

That is why I believe that the No. 1 priority now must be to look at those businesses and see how we can support their reduced capacity operation through to next spring. That means we have to abandon this silly, one-size-fits-all blanket policy that treats all businesses as if they were the same. We need a more sophisticated, more tailored and more targeted approach that works with individual businesses and tries to get them through to a position next spring when they will be no worse off than they are now. Support will also be required beyond that—even if the restrictions are lifted, it will take time for public confidence to return and for the market to get back to where it was at pre-covid levels. We should be planning for two to three years of further support.

It is right that the public purse should do that, because businesses are closed and closing because of public policy and a public imperative. That must be the priority. The Government cannot abandon support on 31 October, stand back and watch the sectors decline.