§ Motion made, and Question proposed, That this House do now adjourn.—[Mr. Bates.]
4.15 am§ Mr. Bill Walker (Tayside, North)It may come as a surprise to you, Mr. Deputy Speaker, to know that, at 4.15 am, I am delighted to have secured a debate on a vital aspect of the Scottish economy—the tourist industry.
Few will deny that Scottish tourism is a major business, which contributes some 5 per cent. of the gross domestic product and employs more than 180,000 people, many of whom are my constituents. Tourism is the largest employer in North Tayside. Indeed, tourism and the whisky industry are major contributors of overseas earnings to Scotland and, in many instances, their activities are linked. For example, the visitors' centres and distillery tours are enjoyed by thousands of people every year.
The good news is that the value of tourism—especially tourism from overseas—was last year estimated to be £670 million. That was an increase of 8 per cent. over the previous year, making last year the third successive year of growth. However, the bad news is that Scotland's tourist industry is now operating below the levels of the 1980s. There has been a massive decline this year in the number of visitors to Scotland's many stately homes. In some cases, the fall has been between 10 per cent. and 20 per cent.
What is the problem? The problem is that, in 1993, United Kingdom tourism expenditure was still some 17 per cent. below that of 1989. Domestic tourism accounts for 68 per cent. of all tourism expenditure in Scotland. Eighty-three per cent. of the United Kingdom's population live in England, so they form the major segment of Scotland's tourist market.
Although the United States, France and Germany are vital for overseas earnings, they and visitors from the rest of western Europe, Japan, Australia, New Zealand, Canada and elsewhere account for about 1.8 million overnight trips. English visitors account for about 3.7 million overnight trips; Scottish internal visitors account for 4.9 million; and visitors from other parts of the United Kingdom make 400,000 such trips. That makes a United Kingdom total of 9 million overnight trips to Scotland. Therefore, the internal United Kingdom market, and especially the English market, is vital to the continuing prosperity of Scotland's tourist industry.
The Scottish tourist board estimates that 1994 has not been a good year for Scottish tourism. That is associated with the decline in the United Kingdom market. Although the overseas market has probably grown, a decline in tourism of about 6 percent. in real terms is expected in the market as a whole.
Several factors have probably contributed to that decline. The recession has made people cautious; they are unwilling to spend money. The hard firm pound that is good for the United Kingdom economy also helps our people to buy more abroad and less, relatively, within the United Kingdom. Poor summer weather in 1991 and 1992 did not help, and we may not have competitive prices in hotels and restaurants. Worse still, we may have given offence to customers and potential customers from 1539 England. Everyone who has worked in the service sector knows that a cardinal rule of the business is not to give offence to the customers. I shall return to that subject.
Moreover, we may not be marketing Scotland adequately—I shall say more of that later, too. Certainly the decline of salmon stocks in Scotland's rivers—due, many of us believe, to the number of fish drift-netted off the north-east coast of England—has encouraged many of our former regular visitors to Scottish rivers to seek better fishing overseas. I am glad to see my hon. Friend the Member for Kincardine and Deeside (Mr. Kynoch) in the Chamber, because the River Dee has suffered in that way.
The failure of Scottish football teams in European countries may also have influenced those who used to travel from England to see games in Scotland. Furthermore, an Automobile Association survey has highlighted the absence of non-commercial rest areas on the main tourist arterial routes, a lack of round-the-clock fuel facilities, and an absence of public toilets.
I hate to think what the proposal of the Royal Commission on the environment to double petrol prices would do to the highlands. Perhaps there would be a second highland clearance; I do not know—but certainly, if implemented, that proposal would kill the tourist trade from England.
Thus far, I have highlighted some of the problems. What can and should be done today to bring the visitors back from England and encourage them to resume their delightful visits to Scotland? First, I wish to commend and not to condemn—as some hon. Members did—Scottish Hydro-Electric for what it said about price rises:
The company, which serves northern Scotland, said the price rises proposed by the Office of Electricity Regulation would not be enough for proper maintenance of its network …Chairman Lord Wilson said, 'It is not right that the massive investment of our predecessors to provide electricity throughout the Highlands and Islands should now be jeopardised. We would be failing in our duty to our community if we allowed our service to deteriorate by accepting these proposals."'The board of Scottish Hydro-Electric is to be commended, not condemned. It is right to be concerned about continuing supplies for the elderly, the tourist industry and other vulnerable groups.In a letter that I have sent to my hon. Friend the Minister, the chairman of the Perthshire tourist board, Councillor Tom Campbell, tells me that Eire has enjoyed an annual increase in tourism of 6 per cent. over the past decade. People are going from England to Eire in ever-increasing numbers, and Councillor Campbell attributes that fact to vigorous and well-funded marketing. He further claims:
It is my Board's belief that the Scottish Tourist Board undoubtedly has the expertise to carry out its functions, but that it is unable to make the Scottish tourism message heard in a competitive international market-place because of insufficient funding from central Government.The Scottish Tourist Board has stated that, if it were to receive additional Governmental investment of just £7 million annually, (all of which would be devoted to marketing), by the year 2000 there would be an additional 39,000 jobs created in Scottish tourism and an increase in annual spending (in real terms) of £430 million by the year 2000. There can be few, if any, other areas of investment which would provide such high levels of return.1540 That is one suggestion from the chairman of the Perthshire tourist board and, in this instance, I must tell my hon. Friend that Mr. Campbell has my support.I also suggest that a commitment to electrifying the main railway line between Edinburgh and Aberdeen would send some positive signals to people living in England and in Europe, and would help the oil and gas industries. I hope that we will see something positive on that soon.
More roadside facilities, as highlighted by the AA, are a must, and the removal of drift netting from the north-east coast of England within two years would help Scotland's salmon rivers and bring back England's fishermen. Scotland's hotels and restaurants would benefit from a reduction in non-domestic rates, and I hope that the new local authorities will hear that. The hotels in turn would be able to act, because they should examine closely their pricing structure to give value for money.
Scottish welcomes should be the order of the day. Everyone in Scotland should be made aware of the damage which can be done by giving offence.
§ Mr. George Kynoch (Kincardine and Deeside)On the subject of giving offence, is my hon. Friend aware that extreme elements of the Scottish National party waged a campaign in my constituency in which they put up posters entitled "Settler Watch"—a campaign against those people who come in from outwith Scotland to settle in my constituency and enhance the economy of the area? Does he think that that enhances the tourism prospects of Scotland?
§ Mr. WalkerNo, I do not, and I thank my hon. Friend for his contribution. I believe that narrow nationalists—and, I am sorry to say, some socialists—should be made aware that they are giving offence when they prattle on about land ownership and the way in which Scotland's moors and mountains are visited by individuals for grouse shooting and deer stalking. Those visitors and the anglers on our salmon rivers spend substantial sums of money locally and provide employment for native Scots in the more isolated and remote areas, where no other employment is available.
Narrow nationalists must also be told in no uncertain terms to stop making anti-English statements of the kind mentioned by my hon. Friend the Member for Kincardine and Deeside, both inside and outside Scotland. Some hon. Members might bear that in mind. Narrow nationalists must also be told to stop painting anti-English slogans on bridges and at other prominent positions throughout the tourist areas of Scotland. Those give offence and drive people away.
I repeat what I said earlier—if one is in the service sector, one must never give offence to customers or to potential customers. The activities of narrow nationalists must be blamed for much of the decline in the numbers of tourists coming to Scotland from England. The House will note that I did not say "English tourists", because there are a lot of people living in England who are not English born and bred. However, they used to come to Scotland in substantial numbers, and they are important to Scotland.
I trust that my hon. Friend will take on board some of my thoughts, and I hope that he will be able to act where he can on some of my proposals.
§ The Parliamentary Under-Secretary of State for Scotland (Lord James Douglas-Hamilton)I pay tribute to my hon. Friends who are present at 4.30 in the morning to hear this important debate on Scottish tourism. They include my hon. Friends the Members for Tayside, North (Mr. Walker), for Kincardine and Deeside (Mr. Kynoch), for Langbaurgh (Mr. Bates) and for Woodspring (Dr. Fox), who have attended the debate in part or in whole.
I warmly congratulate my hon. Friend the Member for Tayside, North on raising the subject. I am, of course, aware of the recent publication by the Campaign For Rail Electrification Aberdeen to Edinburgh of the feasibility study of electrification north of Edinburgh. I understand that British Rail and Railtrack co-operated with the CREATE campaign group in looking at the case for electrification. It is, of course, for Railtrack to come forward with investment proposals that it considers worth while and for it to determine priorities within the resources available to it.
However, the Government are prepared to consider assisting railway investment schemes which, while they do not earn an adequate financial return, provide a satisfactory cost-benefit return when the wider benefits are taken into account. Any proposals would be given careful consideration within the resources available. I assure my hon. Friend that the Aberdeen to Edinburgh line remains an integral part of the east coast main line franchise.
I agree with my hon. Friend that slogans such as "English go home" should be strongly discouraged. All graffiti should be discouraged and removed. I am glad to see the hon. Member for Paisley, South (Mr. McMaster), who has just joined us, in the Chamber. It is highly irresponsible of a few individuals to paint on buildings hostile signs against the English. The only effect of that is to reduce employment in Scotland. Indeed, such graffiti have given rise to complaints to the Scottish tourist board. I should ask the relevant communities and local authorities to take every action to remove the graffiti.
I remember some time ago making complaints to a council. It said that it removed only politically offensive graffiti. I regard graffiti such as my hon. Friend described as politically offensive, but I also regard all graffiti as giving rise to offence. They should be removed.
People come to Scotland because of the environment, the people and the heritage. They like the wide open spaces, the friendliness of the people and the magnificence of the heritage. In the constituency of my hon. Friend the Member for Tayside, North, or not so far away, there are Discovery point, the Perth art gallery, Dunkeld cathedral, Blair castle and the Pitlochry festival theatre as well as the excellent distillery. All those places—
§ Mr. Bill WalkerDo not forget Glamis.
§ Lord James Douglas-HamiltonMy hon. Friend is right.
The visitor spend in Scotland has fluctuated, but it has increased from £1.8 billion in 1990 to £2.1 billion in 1993. Of course, tourism is the biggest single employer in the whole of Scotland. It is of vital importance to the economy and to the area that my hon. Friend represents. It is therefore particularly appropriate that we should debate it tonight.
1542 We recognise tourism world wide as a growth industry of particular potential. It is a major creator of employment and wealth. Around the globe, countries and destinations want to win an ever-increasing share of those benefits. Such success cannot be achieved overnight. It is a continuous, constantly evolving process. Strengths have to be recognised and built on, weaknesses identified and remedied, trends and the aspirations of potential customers monitored and responded to. Of course, the competition is increasing all the time. New destinations appear every year to fight for their place in the world tourism market.
I fully recognise the challenges which face the Scottish tourist industry. We are pledged to do what we can to assist a very important sector of the Scottish economy—not, I may say, by displacing the industry's own actions. In the final analysis, the industry must prosper through its own efforts. Our role is to facilitate and encourage the industry's endeavours. That role is not simply about providing funding support—we provide substantial support—although that is important. There are other, equally significant, ways in which our resolve to help the industry must find expression.
In 1992, we conducted a major review of the way in which public sector support for tourism was directed. The outcome was announced by my right hon. Friend the Secretary of State in June last year. The review signals the Government's determination to assist the Scottish tourist industry to maximise its potential. It was undertaken because, self-evidently, it was needed. Support arrangements for tourism had evolved in a piecemeal fashion over a considerable number of years. In our judgment the time had come for a major reconsideration of the fundamentals of public support. That was clear from the consultation.
The review identified the important role played by the public sector at both local and national level. It noted widespread concern that current arrangements were fragmented and no longer effective. From that, we concluded that Scottish tourism needed a support structure that was administratively straightforward, was based on partnership, incorporated effective liaison arrangements and operated within the context of a national strategy. Above all, it had to be accepted and understood by the industry that it served.
While achieving a revised support structure inevitably meant change, we also accepted the widespread view that such change should be achieved through evolution—in other words, through existing Government agencies at a national level and the existing partnership between local authorities and the tourism trade at a local level.
All the detailed decisions flowing from the review have been funded on those general principles. I hope that my hon. Friend agrees that we have made rapid progress in implementing the review's conclusions. Arrangements at the national level have been clarified. The Scottish tourist board is responsible throughout Scotland for marketing and for area tourist board sponsorship. In addition, business development activities are now consolidated in the Scottish Enterprise and Highlands and Islands Enterprise networks.
Links between the boards of the Scottish tourist board, of Scottish Enterprise and of Highlands and Islands Enterprise have been strengthened through cross-membership. In recognition of the importance of tourism in the highlands, the Scottish tourist board will 1543 establish a substantial presence in Inverness by 1 April 1995. A minimum of 40 full-time jobs will be located there, together with the board's quality assurance inspectorate.
The Scottish tourist board also remains my right hon. Friend's statutory advisor on tourism matters. The board has been given responsibility for drawing up a strategic plan in consultation with a wide range of partners, including representatives drawn from Scotland's tourism industry. I shall say more about that later.
At local level, my right hon. Friend announced in March our intention to establish a network of 14 area tourist boards by 1 April 1996. I am sure that my hon. Friend is delighted that we decided that Perthshire should retain its own tourist board—an outcome for which he campaigned vigorously and consistently. I had the pleasure earlier this year of officially opening the Perthshire board's new headquarters. The work which the board undertakes is impressive. It is the only ATB in Scotland that operates a visitor attraction—a working corn mill—in the same premises as its headquarters' office. I am certain that Perthshire will continue to prosper in the years ahead under the new ATB structure.
We attach great importance to the work of area tourist boards. They market their local area and provide services to visitors, such as accommodation booking. They operate over 170 tourist information centres throughout Scotland. They also have an important role to play in training and development issues. Arguably most important of all, they represent the interests and provide the voice of the tourist industry itself—over 16,000 tourism businesses are members of an area tourist board.
The Scottish tourist board has been charged with the task of assisting the area tourist board network in managing the changes that are taking place. That is an important element of the review. The new structure must meet local needs while at the same time retaining local loyalties.
We do not intend to impose detailed working arrangements on the new boards. Although the boards will be established under statute, it will be for local interests to determine membership and operational matters. The only exceptions are in respect of a very limited range of circumstances specified in the legislation currently before Parliament. Those have been debated at length and need not be gone over again tonight.
Over-arching those changes are our proposals to improve co-ordination within and between the public and private sectors. Excellent progress has been made here. The membership of the Scottish tourism co-ordinating group, which I chair, has been expanded. That group will continue its work of putting together the views of public sector bodies with an interest in tourism. It will continue to act as a forum for consideration of tourism-related issues of national significance. Most importantly, the group will be responsible for the preparation, dissemination and on-going review of the national strategic plan.
The plan is now in its final draft form, and is on course for launch and publication early next week. Suffice it to say that the plan's purpose is to identify where we are now, where we would like to be and, in general terms, 1544 how to get there. It offers a clear framework for joint progress by the public and the private sectors towards mutually agreed goals.
We have also established the Scottish Tourism Forum, which held its first meeting on 23 September. The establishment of the forum recognises the widespread desire, expressed in the responses to the tourism review, that the industry itself should have a voice in the determination of tourism policy. It brings together a wide range of private sector organisations with a significant interest in tourism matters. It will, I believe, stimulate an informed debate on issues of common concern.
More formally, we look to the forum to provide the Scottish tourism co-ordinating group with advice on the strategic plan. To ensure that that takes place, we have decided that the forum's chairman will be a member of the STCG. That will, I hope, strengthen the close ties that we want to be developed between the public and private sectors.
My hon. Friend mentioned the statistics for tourism for the current year. I am aware that the preliminary statistics prepared by the STB in respect of the early part of the year as regards visitors to Scotland from within the United Kingdom are not encouraging. However, as my hon. Friend knows, the available information is in respect of the period January to June only. We must be careful in extrapolating the data to the full year, especially as the main holiday period is not included in the statistics that my hon. Friend quoted. I hope that the position will improve in relation to the year as a whole.
I am encouraged, however, to learn that the number of overseas visitors to Scotland has apparently continued to increase. That upward trend has occurred for several years, on the back of strong overseas marketing campaigns by the STB, which, I am pleased to tell my hon. Friend, will certainly continue.
§ Mr. Bill WalkerDoes my hon. Friend agree that the number of tourists coming from England has declined, not only this year, but in earlier years, according to the evidence? Does he agree that the behaviour of the Scottish nationalists earlier, when they delayed the business of the House, is a typical example of the way that offence is given, and that such practices have stopped people coming to Scotland?
§ Lord James Douglas-HamiltonThat is possible. We have to obtain the complete figures and study them, but I also think that it is possible that, with the ending of recession, more people in England are taking holidays in the sun, rather than their normal holiday north of the border. Obviously that is a cause of concern. We are examining it closely, and we shall study those matters with regard to the public expenditure survey and Scottish Office funding.
I shall also mention the comparison with Ireland. International comparisons are fraught with difficulty, because of the differences in the structure and financing of the industry. The STB's budget is only one of several components of public sector support for tourism here, and a much more detailed analysis would be required if true comparisons were to be drawn.
In the few minutes remaining, I shall respond about resources. First, the primary responsibility for investment, training and marketing lies with the industry itself, and the purpose of public expenditure should be to supplement 1545 private expenditure where that is necessary. Secondly, the public sector—which includes both enterprise networks, local authorities and organisations such as Scottish Natural Heritage, the Scottish Sports Council and the Scottish Arts Council as well as the tourist board—already makes a significant contribution to supporting the tourism industry.
Several of the public sector bodies that provide assistance have the flexibility to adjust their priorities according to new needs. They will need to consider resource allocations against the priorities set out in the tourism strategic plan, as indeed the Scottish Office will consider resources against those priorities.
The Scottish tourism industry also benefits enormously from European funding, and will do so to a substantially greater extent in future, under the objective 1 programme for the highlands and islands.
1546 I must say also to my hon. Friend that the public purse should not necessarily be the automatic first call when new resources are deemed necessary. The STB exists, as I have said, to support the tourism industry's own efforts—to correct market failure.
The Government are doing a great deal to ensure the well-being of Scotland's tourism industry. The package of measures that I have described will help to achieve a significant improvement in Scotland's position as a visitor destination. It is now up to the industry itself to play a positive and forward-looking role in helping turn our proposals into a success story.
I say briefly to my hon. Friend that, in 1993, more than 10 million tourists took overnight trips, and those resulted in generating spend of more than £2 billion. The census of 1991 put the number of tourism jobs at 171,000–8 per cent. of all employment.
§ The motion having been made after Ten o'clock, and the debate having continued for half an hour, MR. DEPUTY SPEAKER adjourned the House without Question put, pursuant to the Standing Order.
§ Adjourned accordingly at fifteen minutes to Five o'clock