HC Deb 07 February 1968 vol 758 cc381-3
26. Mr. Michael Heseltine

asked the President of the Board of Trade whether he is aware that in 1966 over half of all visitors to Great Britain stayed in London and nowhere else; and what action he will take to encourage such visitors to spend more time outside London.

Mr. J. P. W. Mallalieu

The British Travel Association promotes the attractions of all parts of the United Kingdom in its overseas advertising.

Mr. Heseltine

Does not the hon. Gentleman agree that outside London the rates of return in this industry are very low and that, given help, this industry is able to make a valuable contribution to regional development?

Mr. Mallalieu

The industry is certainly able to make a valuable contribution not only to regional development, but to our balance of payments. It is a most important industry. We are considering what help we can give.

Mr. Rose

Will my hon. Friend consult my right hon. Friend the "Minister for the Arts" with a view to ensuring that a greater proportion of grants goes to provincial cities so as to make them more attractive, not only to foreign visitors, but also to the people who live and work in them?

Mr. Mallalieu

I am all for that. I will have a word with my right hon. Friend.

37. Mr. Blaker

asked the President of the Board of Trade what is the rate of growth of earnings from overseas visitors to Great Britain in the years since 1959; and how this compares with the rate of growth of other West European countries, available to him from international sources.

Mr. J. P. W. Mallalieu

About 6 per cent. per annum between 1959 and 1966, which is less than for most other West European countries, though United Kingdom earnings were the fifth highest in absolute terms. As the Answer contains a number of figures I shall, with permission, circulate it in the OFFICIAL REPORT.

Mr. Blaker

I am grateful to the Minister for that reply. Can he estimate the adverse effect on the British holiday trade of the travel tax recently announced by the United States Government? Is not regrettable that, by the introduction of their £50 travel allowance limit, Her Majesty's Government have set the example for this sort of restrictive activity and are we not likely to be hurt by it more than we are helped?

Mr. Mallalieu

The restriction on the travel allowance was not something which one would do if one could avoid it. It was forced on us as one of the measures to correct the balance of payments.

As to the United States restrictions, we still do not know what they will be and when, if ever, they will be applied, so that it is not easy to make a forecast of their effect on tourism from that country.

Mr. Onslow

Will the hon. Gentleman understand that the health of the tourist industry is closely bound up with the health of the aviation industry? We cannot expect tourists to fly here if there is no hotel for them to stay in.

Mr. Mallalieu

I have that point very much in mind.

Mrs. Renée Short

Is my hon. Friend aware that in the Common Market countries in particular the cost of living is very high, so that there is great scope for the tourist trade in this country if his Department would advertise energetically throughout the Common Market countries for their citizens to come here for holidays?

Mr. Mallalieu

I entirely agree with my hon. Friend. The British Travel Association has during the past year conducted a special campaign to advertise abroad the advantages of holidaying in this country.

Following is the information:

Average rate of growth in earnings from overseas visitors (travel credits) between 1959 and 1966
Per cent. per annum
United Kingdom … 6
Austria … 17
Belgium and Luxembourg … 15
Denmark … 13
France … 12
Germany (Federal Republic) … 8
Greece … 19
Ireland … 8
Italy … 16
Netherlands … 16
Norway … 11
Portugal … 40
Spain … 34
Sweden … 0.5
Switzerland … 11

Source: The yearly reports on "Tourism in O.E.C.D. member countries". Since different methods are used by different countries to estimate travel credits, the percentage changes are not always on a comparable basis.