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10.48 am
Mr. Tom Pendry (Stalybridge and Hyde): I join the hon. Member for East Surrey (Mr. Ainsworth) in welcoming the debate, and I join my right hon. Friend the Secretary of State in congratulating the hon. Gentleman and his twin, the hon. Member for West Suffolk (Mr. Spring), on keeping their posts. When the hon. Member for East Surrey chided my right hon. Friend for being in party political mode, he clearly had his tongue in his cheek. The hon. Gentleman made a very party political speech, which was a pity because some Members of the House have been working across party lines to assist the tourism industry. I think that we were doing that work well.
As my right hon. Friend the Secretary of State said, we have had many such debates in the House over the past few months. That highlights the Government's concerns for tourism and, as he pointed out, the expansion of tourism presents a huge economic and employment opportunity for this country. I shall not trot out all the figures, although I accept the remark of the hon. Member for East Surrey that we cannot possibly spell them out often enough because tourism is such an important industry.
I congratulate my right hon. Friend Secretary of State on selecting this debate from his very busy departmental portfolio. It signifies the importance that the Government attach to tourism, which is backed up by the policy initiative, "Tomorrow's Tourism", about which we have heard. I am pleased to have played a part in raising the profile of tourism in the political sphere with the publication of "Breaking New Ground", Labour's pre-election tourism strategy. I also welcome the efforts made by my right hon. Friend and the Minister for Tourism, Film and Broadcasting, to develop and build on that initial document once in office.
I shall use this opportunity to raise several important issues in the tourism portfolio, to which I hope both Ministers will turn their attention. As hon. Members
know, I am chairman of the all-party tourism group. I am pleased to see the secretary of that group, the hon. Member for Southport (Mr. Fearn), in his place. I am also fortunate enough to be the chairman of the all-party sports group. Until a moment ago, the secretary of that group, my hon. Friend the Member for Harrow, West (Mr. Thomas), was in his place, but he has temporarily left the Chamber.
More still needs to be done to promote the synergies between sport and tourism. It is disappointing to note that only one reference is made to sports tourism in "Tomorrow's Tourism" because sport is one of the fastest growing areas of tourism--be it in respect of international visitors following major sports events, of which this country has a rich stock, or the taking up of activity holidays. The variety ranges from the Secretary of State's favourite pastime, mountain climbing, to playing the links on the great Scottish golf courses, to pick just two examples.
The British Olympic Association reports that, between 1986 and 1998, the United Kingdom played host to some 34 senior world championships and 35 senior European championships in the sports that it represents. If we add to that the events of Euro 96, and the cricket and rugby world cups, we can see the potential. The British Tourist Authority has worked hard to promote the cricket and rugby world cups, which are being staged here this summer. It is now working on a more detailed sports strategy that it hopes to launch later this year. What a prize it would be for tourism if we were fortunate enough to host the soccer world cup in 2006--something that my hon. Friend the Minister for Sport is working hard to bring about.
May I make a plea that the Government get more actively involved in that area? There is much natural synergy between the Departments. Sport should be integrated into tourism thinking, as arts and heritage are integrated now. That could be achieved through the instigation of a special unit within the Department of Culture, Media and Sport to co-ordinate such opportunities. I understand that the former head--
Mr. Peter Ainsworth:
May I pay tribute to the immense amount of work that the hon. Gentleman has put in to tourism and to sport over the years? He is a distinguished spokesman on both. Does he think that sufficient information is available about the value of sport to tourism in this country? There seems to be a dearth of statistics.
Mr. Pendry:
I thank the hon. Gentleman for his kind remarks. I agree--I do not think that sufficient information is available. Indeed, I was about to say that I understand that the former head of sport within the Department is to become the head of tourism--if he has not done so already--which could be a useful first step.
An issue that has only recently come to my attention is one that poses a significant threat to the growth opportunities that have been discussed this morning. It concerns the European Union's infraction proceedings against the United Kingdom Government over air passenger duty, to which the hon. Member for East Surrey referred.
The all-party tourism group recently received a delegation of leading figures from the travel and tourism industry. We were addressed by the heads of the
Association of British Travel Agents, the British Tourist Authority, the Federation of Tour Operators, the British Incoming Tour Operators--heavyweight representatives of both the inbound and outbound industries. They described to us the damage that that tax has caused and continues to cause to tourism. The BTA estimates that APD has reduced by at least 3 per cent. the number of tourists choosing to visit the UK. That is not surprising when one considers that even our European APD is double the airport tax in France and Italy and more than three times that in Spain. Those countries are our major competitors in tourism.
As we approach the millennium, Britain should be experiencing a tourism boom. It would be tragic if we squandered the potentially massive economic benefits of a boom by letting unfair and uncompetitive levels of APD squeeze tourist numbers. My right hon. Friend the Secretary of State, ably supported by my hon. Friend the Minister for Tourism, Film and Broadcasting, has been strong in making the case in government for the need to keep APD as low as possible. We welcome the fact that it was not increased in the last budget, for which much credit goes to my ministerial colleagues.
However, we now face a new threat in the form of the EU's infraction proceedings against the UK's domestic return-leg APD exemption. Put simply, that means that the current level of £10 may rise to £20 on a return UK flight. That is hardly likely to encourage more visitors to London to visit our regions, or Scotland and Wales. Indeed, the consequences for Northern Ireland, which is struggling to develop its tourism, do not bear thinking about. Britain has led the way in the development of low-cost air travel and has seen a resulting tourism boom in the regions, particularly in Scotland. We must be careful to ensure that that strength is not lost and that those remarkable gains are not thrown away.
I recently undertook some research and tabled a series of questions to the Chancellor of the Exchequer on the economics of the APD. The answers make interesting reading. My hon. Friend the Economic Secretary to the Treasury confirmed that, if APD is charged on both legs of the domestic return flight--this is no doubt whereThe Daily Telegraph got its information from--an extra £60 million would accrue to the Treasury. That is a minor windfall by Treasury standards, but an extremely severe hit on an industry that must compete in the cut-throat international market of tourism.
I hope that my ministerial colleagues will make strong representations to the Chancellor, as I am sure that they have already. They are the industry's champions and this is one battle that I hope they win. If the EU infraction proceedings cannot be defeated, the Treasury should consider reducing the overall EU rate from the current £10 to about £8.50, which would be a revenue-neutral charge.
I take this opportunity to urge the Chancellor to go to every possible length to resist the imposition of that return-leg APD in the United Kingdom, but if we are legally obliged to introduce the tax, I urge that, at the very least, the European rate be lowered so that consumers, and therefore the industry, bear no increased tax burden as a result.
My hon. Friend the Minister will be aware of the Association of Recognised English Language Services. An often forgotten but important sector of tourism are
the English language schools, which attract some 750,000 students to the UK each year and provide some £1 billion to the British economy. ARELS represents the quality end of the market. Its 224 members have all had to pass the British Council accreditation scheme, which guarantees high levels in both educational and pastoral care for all its students. Many of the issues with which it is concerned range across a number of departmental areas. I welcome the commitment in "Tomorrow's Tourism" for the DCMS to work with other Government Departments. We promised that before the last election, and it is a promise well kept. It should be of great benefit to organisations like ARELS, which seek closer co-operation with a number of Departments, especially the Department for Education and Employment and the Foreign Office.
I understand that the Government's tourism forum will continue its work as a conduit between the Government and the tourism industry, but I wonder why ARELS is not part of that. I hope that my hon. Friend the Minister will respond to that point when she winds up the debate.
Having been brought up in a seaside resort, I am pleased that the Government have recognised the social and economic importance of such resorts, as my hon. Friend the Member for East Surrey said--I call him my hon. Friend, because he is, even though he is on the Opposition Benches. I know that the British Resorts Association is well pleased with the Government's tourism strategy. Indeed, in response to "Tomorrow's Tourism", it has produced its own document entitled "UK Seaside Resorts--Behind the Facade", which states the case clearly for the regeneration of our seaside resorts.
I should particularly like to commend the work of my hon. Friend the Member for Blackpool, South (Mr. Marsden), who chairs Labour's Back-Bench committee on seaside resorts. It has a large membership following the last election. My hon. Friend and his colleagues have highlighted the need for targeted assistance to regenerate resorts that have been neglected during a long and turbulent period of change for the domestic tourism industry.
The Secretary of State and the Under-Secretary have been gracious enough to acknowledge the contribution that I have made towards tourism. The Secretary of State did so again today, and I am grateful for that. I do not want to spoil the party, but I think that, in some areas, the Government could have gone further. Their proposals fall short of some of those contained in "Breaking New Ground". I hope that the Secretary of State has not lost sight of some of the pledges to which a new Labour Government were committed, one of which was a new Development of Tourism Act. We made that commitment because we recognised that an Act that was more than 30-years-old needed updating to accommodate the structural changes and the different priorities of tourism.
Another important pledge was to harmonise quality hotel ratings across the United Kingdom. Scotland and Wales have gone their own way. Will the Minister tell us what is being done to adhere to the commitment that we made before the general election on a UK harmonisation scheme?
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