Tourism (Hansard, 13 April 1981)

§ 14. Mr. Adley
asked the Secretary of State for Trade if he is satisfied that his Department offers satisfactory services for the development of tourism; and if he will make a statement.

§ Mrs. Sally Oppenheim
The Government provide finance which amounted in 1980–81 to some £40 million to the British Tourist Authority and the national tourist boards for them to promote the development of tourism to, and within, Great Britain. I am sure that these bodies offer very satisfactory services for the development of tourism. I can also reassure my hon. Friend that finance provided by the Government is being fully maintained in real terms this year.

§ Mr. Adley
Is my right hon. Friend aware that the British Tourist Authority was joined by British Airways and the British Hotels Restaurants and Caterers Association in making representations to my right hon. and learned Friend the Chancellor of the Exchequer about the proposal in the Budget on VAT for overseas visitors, and that they were disappointed at the lack of response and the widening of the gap in industrial building allowances? Can my right hon. Friend explain clause 54 of the Finance Bill? Can she say, for example, whether tourism is to be excluded from the proposals in that clause?

§ Mrs. Oppenheim
My hon. Friend, as usual, has put up a robust and valid case for the British tourist industry. I am well aware of the value of the British tourist industry, which I believe is third, after North Sea oil, as an exporter. It is worthy of the greatest support because of its performance during difficult times and because it does not ask the Government for handouts, but seeks support and encouragement. That it will certainly receive from me.
The taxation issues that my hon. Friend has raised are matters for my right hon. and learned Friend the Chancellor of the Exchequer, but I can reassure him on two issues. The business start-up relief scheme will apply 12 to the tourist industry in general, while the industry's views on the loan guarantee scheme have been made known and are being sympathetically considered.

§ Mr. Michael Brown
Is my right hon. Friend aware that the development of the tourist industry does not depend only on rural areas, because there is a growing tourist industry in industrial areas? Is she aware, for example, that one of the problems of a developing tourist industry in a constituency such as mine—Scunthorpe—is that there are few hotels and they are full all the time? Despite what local authorities are trying to do, there are not enough hotels to cope with the excellent tourist facilities for those who wish to see British industry at its best.

§ Mrs. Oppenheim
I am aware of the tourist potential of Scunthorpe. I am also aware that there is a lack of hotels in some similar areas, not least my own constituency. Some options and initiatives for tourist development areas have been put to my Department, and these are under consideration. We have to decide where there is the greatest need for the economic benefits of tourism and then direct the funds that are available to where they will do the most good. Clearly, however, we shall bear in mind what my hon. Friend has said.

§ Mr. Clinton Davis
I recognise the invaluable work done by the British Tourist Authority, the English Tourist Board and other bodies in trying to ensure that the tourist trade benefits, but does the right hon. Lady agree that more positive action needs to be taken to deal with the rip-off in hotel pricing over wide parts of the country, but in particular in London, which is a handicap to the work of those bodies?

§ Mrs. Oppenheim
The authorities and the hotels are very much aware of the adverse publicity that they have received, much of which has not been deserved, since, with the exception of perhaps four of five hotels, the hotels whose very high rates have been quoted in the press have a majority of their rooms occupied by people who are paying much lower rates. I have tried to encourage them to advertise their lower rates and not merely their rates, because I think that they are getting what I believe is known in the current vernacular as the name without the game.