§ 3. Mr. BayleyTo ask the Secretary of State for National Heritage what representations she has received on the impact of the airport tax on tourism in the United Kingdom. [12218]
§ Mr. SproatWe have had representations from several tourism organisations. Tourism is a prosperous and expanding industry, and there is no evidence that the duty has had any significantly damaging effects on tourism. Indeed, since the duty was introduced in 1994, we have had record numbers of overseas visitors to the United Kingdom.
§ Mr. BayleyThe Minister will be aware that, in its first year, the airport duty raised £350 million for the Treasury. Has his Department make representations to the Treasury proposing that some of that money should be used to expand the job of the British Tourist Authority abroad to encourage tourists to come to Britain?
§ Mr. SproatNo, it has not, because it is a well-known principle of government—it obtained under Labour Governments as well as the present one—that the Treasury does not like hypothecated income.
§ Sir Donald ThompsonHas my hon. Friend considered the effect of the tax on destinations within the United Kingdom? Does it not put a strain on airlines, especially given the amazing and huge revival of the railways since privatisation?
§ Mr. SproatI am glad about the improvement in the railways. It is true that the amount of money spent by our population on tourism has gone up at the same time as the spend by foreign visitors has increased. The answer to my hon. Friend's question is that the tax has not affected things one way or the other.