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11.2 am
Mr. Ronnie Fearn (Southport): I am pleased that the Government have given the House this opportunity to debate tourism fully--we have had other debates, but not a full one. I hope that that is an indication that the Government now take tourism seriously, because it vital to our future.
The Government's strategy for tourism correctly identifies the challenges and problems faced by the tourism industry as it continues to develop. The key is to find solutions to those problems in the new millennium. Speaking of the millennium, I must say that I think the dome will be a great success during 2000 and afterwards. I have been amazed by the exciting progress that has been made: it will be a great attraction--indeed, as a result of skilful pre-publicity, it already is. We in the House should talk it up, not talk it down.
I welcome the tourism forum, which is much in line with the Liberal Democrat proposal for a tourism commission. The forum has drawn in many sectors of the industry: it covers everything. Only by working with people with experience on the ground will we eventually make progress.
I hope that regional development agencies will take the same inclusive approach, especially in the north-west of England. I am worried that they will take an autocratic approach, as quangos often do. Nowadays, the Local Government Association takes a co-operation approach to tourism. Tourism needs that spirit to overcome many challenges. What about the RDAs? What safeguards have the Government put into the RDA system to ensure proper consultation and co-operation?
The tourism forum sets high goals. I agree that standards must be raised. We must invest in the people who work in the industry and at our tourist attractions. We must market effectively at home and abroad. If we are to increase tourism yield without damaging the environment, quality must be the name of the game.
The Government's strategy document has identified many problems but does little by way of proposing solutions or alleviating some of the burdens on tourism. Taxes on tourism have gradually risen--new and increased taxes have already been imposed or proposed, such as air passenger duty and road pricing for London taxis--and will continue to rise unless the Treasury is made to understand how it is milking this important industry.
I do not know when the industry will buckle under the stress, but I fear that it will reach that point quite soon. I am pleased that, as a result of pressure, the Government have wisely decided not to impose a flat-rate tax on restaurants, cafes and bars to fund the Food Standards Agency. That would have been over-the-top taxation on tourism.
Tourists cannot always be relied on to come to Britain no matter what the price. Many British holidaymakers no longer take any holidays in Britain, because leaving Britain even for a short break has become cheaper than a short-break holiday in this country. The continued strength of the pound is a key cause for concern. In that respect, tourism is no different from all our other imports and exports. What of the 40 per cent. of Britons who do not take any holidays, whom the Secretary of State mentioned? With domestic prices so high, that type of social exclusion will continue even when the pound falls.
To help people who do not take holidays, investment in affordable public transport must be stepped up to improve access to our seaside resorts, some of which--including my constituency of Southport--now attract investment for tourism developments from many sources, such as the lottery, European objective 1 and the single regeneration budget. That investment is valuable, and I hope that RDAs will see the potential in our seaside resorts, and will take up their cause. If visitors cannot reach the resorts easily, private industry will not be prepared to put in the funding needed to operate new tourist developments. Southport receives 4 million day visitors a year, but investment in rail links is urgently required. That problem is duplicated all over the country.
London hotels are some of the most expensive in the world, yet their prices are sometimes not matched by standards and quality. Property prices are high, but so are taxes. VAT rates are among the highest in Europe. The Government must do more to create a climate in which tourism can flourish. I must again ask what progress the Treasury has made on its investigation into the proposal that VAT rates on tourist accommodation should be reduced to average European levels. That important question has not been answered in the tourism document, although the detailed report produced by Deloitte and Touche has been on the Chancellor's desk for over a year.
I am pleased that the Department of Trade and Industry consumer affairs department is at last trying to get to grips with the apparent overcharging and poor treatment of single guests. When will the investigation be completed? More important, will the treatment of single travellers be included as a feature in the criteria for the new grading system? I hope that the new grading system will be easily understood, relevant to the needs of guests and well-monitored. If the scheme takes off, it could really help to encourage hotels to raise standards. When does the Minister expect the scheme to be fully implemented? The Secretary of State said that it would be launched in September, but when will implementation commence?
Mr. Chris Smith:
I can confirm that September will be the date of implementation. Gradings will be announced and published for individual hotels and guesthouses across the whole of England.
Mr. Fearn:
I am pleased to hear that. If the regional tourist boards are to implement the scheme, can we have assurances that they will stick to the same criteria to monitor standards? If the same standard of accommodation is classed as two-star in one area and four-star in another, the system will fail.
London is a great tourism asset, and a gateway to the rest of Britain. It has wonderful heritage sites, and great innovations. It is very fragmented, however, and the lack of effective co-ordination and strategy has led to uncertainty. I am very hopeful that the new London assembly will have both the range of powers required and the will to take the lead. I am optimistic that it will adopt a positive approach, and will see the value of tourism rather than just seeing that which is superficial.
The mayor and the assembly must work with the London tourist board, giving it strategic support and facilitating negotiations rather than imposing hidden taxes. I refer to the threat to black cabs of having to pay extra taxes to go into the west end, as proposed in the
document "Breaking the Logjam", produced by the Department of the Environment, Transport and the Regions. That would be an additional tax on our theatre industry, which is a major tourism asset. I hope that improving all forms of public transport will be a priority. West end taxis really are part of our integrated public transport system, and a vital component of the tourism product--as the Government have already stated.
The Thames is also one of our biggest tourist attractions, drawing in more than 2 million visitors a year. The "partners in progress" initiative launched by the Port of London Authority in 1993 provided boat owners and operators with licences. It has invested £25 million in sightseeing and restaurant services, creating many new jobs. I am very much in favour of an improvement in public transport on the Thames. I also seek assurances that existing providers of tourist and leisure cruises will not be penalised, and that all agreements with existing boat operators will be honoured by London River Services. London Transport should be commended on any improvements that it can make in addition to, not at the expense of, existing operators.
For many years, successive Governments have neglected to recognise just how much tourism contributes to the economy, unless that is related to how much tax they can squeeze out of it. This Government must never forget that tourism is worth £53 billion a year, and employs 1.75 million people--7 per cent. of our work force. That makes it more important economically than all the other functions of the Department for Culture, Media and Sport put together.
Air transport is vital to our industry. Will the Minister vigorously fight the threat to impose air passenger duty both ways on internal flights in the United Kingdom? Will the Department safeguard the one-way rate for day return visitors? Tourism is the largest industry in Scotland, and is also essential to the economic future of Northern Ireland. The great majority of international visitors to the United Kingdom arrive in London and then travel on within the United Kingdom. Is not the proposed increase in air passenger duty an incentive to tourists to stay in the London area, which, in the summer, already teems with tourists paying over the odds? Sustainable tourism involves encouraging visitors to spread out to all other areas; this measure deters them from doing so.
Mr. Fabricant:
My hon. Friend the Member for Hexham (Mr. Atkinson) tells me that a return flight from London to Newcastle costs about £280. Would the hon. Gentleman be surprised to learn that it is possible to travel to Boston and back with American Airlines for about £210?
Mr. Fearn:
I agree with the hon. Gentleman, having seen those prices. Perhaps the hon. Gentleman has been to Boston himself. As I said earlier, people are making the choice to our detriment.
The British Tourist Authority and the British Incoming Tour Operators Association are particularly alarmed by this development. I ask the Minister to take the matter very seriously. It cannot be handled by the new Scottish Parliament or the Northern Ireland Assembly; it must be dealt with here in Westminster. I urge the Minister to support Scotland, Northern Ireland and Wales, and also to ensure that the British Tourist Authority continues to
market and promote Scotland, Northern Ireland and Wales abroad. Overseas marketing is still within their remit, despite the existence of their own Parliament and Assemblies.
I was pleased to be at the launch of the British Hospitality Association's careers festival this week.It is encouraging to see such a fragmented industry co-operating to produce such an event, and it is a signal that the tourism and hospitality business is now regarded as a good career option rather than casual work.
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