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Preparing Britain's Economy for the Future

I hope that tourism is growing by more in the north-east than anywhere else, because it gets seven times the amount of money that the south-west does, even though its tourism industry is seven times smaller; the irony there is that the money has not gone to where the tourism industries should actually be. The problem is not only in the distribution of funds, but in an overlapping of effort. It cannot be right that in Singapore there are five different offices representing and promoting tourism in different parts of the United Kingdom. That has come about simply because there is not one voice looking after English tourism, and we need to get back to that. The Conservative policy is to ensure that in this economic downturn we spend the money apportioned to tourism better, which means having a stronger voice for Visit England and a less powerful voice for the RDAs, but a stronger voice for the brand names of the areas that we actually know and love. We should not forget that this country is the sixth most visited place in the world, which is amazing given that the whole of the UK could be fitted into one of the great lakes in Canada. Yet, as I have said, the Government do not recognise the potential for growing this particular business. That is reflected in what is called the "tourism deficit": in 1997, the amount of money that Britons spent abroad taken away from the amount of money that overseas visitors spent in the UK gave a figure of minus £4 billion. We were spending far more money abroad than we are able to bring in, and that figure has jumped to minus £18 billion. That is how much we are losing, whereas countries such as France or Spain have a surplus, and are making money because they are able to attract people in. That is not just to do with the weather; it is to do with other aspects too. Let us consider the UK's proportion of global tourism. In 1997 we had 6.9 per cent. of the international market, but the figure has dropped to 3.3 per cent. Those figures must be reversed if we are to get a grip on our tourism industry and what we can offer. We should celebrate our offering, because this country has things that cannot be replicated in new tourism industries in other places. Dubai and Thailand are great places to visit, but Oxford is Oxford and Brighton is Brighton. The culture offered in Britain is unique, but we need to sell it too. Another irony is that the Department for Culture, Media and Sport is one of the few Departments that could make money for the Exchequer were the Exchequer to invest in it; for every £1 spent abroad, we bring £25 back. Does the Exchequer recognise this? I do not think so, because it has cut Visit Britain's budget by 20 per cent. over the next three years. We have a once-in-a-lifetime opportunity with the Olympic games coming here. It will be a fantastic chance to celebrate what is good in Britain, beamed to television sets with billions of watchers around the world. Not a single penny has been made available to harness that opportunity, and that is a scandal. The Treasury has removed tax relief on second home lets. What conversations did the Minister have with the DCMS about that? It will affect the tourism industry, because fewer people will be able to afford to let out their homes for tourism purposes. We have also seen a legal battle over VAT levels on bingo. Hon. Members who are familiar with the bingo scene will recognise that the industry has been hit by two taxes—VAT and gross profits tax. Gala Coral took the Government to court and won its case that the VAT imposition was unfair, because it was being hit twice. The Government have responded by getting rid of the VAT but increasing the gross profits tax from 15 per cent. to 22 per cent. Did the Treasury consult the DCMS on that? According to answers to parliamentary questions that I have received, no consultation took place. The consequences are not just monetary. Yes, the Exchequer will lose out because bingo halls will close, but bingo is part of our community. For many of the dear old ladies who play bingo, it is their one evening out in the week. It is as much a part of the community as the post office or the pub, and the Government seem unaware of the impact that this taxation will have on the community. I mentioned pubs, and we have also seen an increase in alcohol duties, part of a grand sweep of hikes in taxation with no recognition of the impact on the normal responsible drinker. Instead of targeting certain types of alcohol, the Government have put a burden on all pubs, and that is why some 40 pubs shut every week. That is changing the fabric of our communities, especially rural communities, where pubs can be one of the main tourist attractions. I urge the Minister to think beyond the numbers, the bean counters and the abacuses over which they toil, and recognise the wonders and the importance of our tourism industry. All these tweaks in VAT and taxation have a knock-on impact on things that are very important to us and have been around for such a long time, and it is destroying some of them. I am passionate about tourism. I hope that I have expressed that today, and I hope that that has come across to the Minister.