HL Deb 16 July 1984 vol 454 cc1171-2
Lord Gainford

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether a fall in the number of tourists visiting the United Kingdom is expected following the recent increase in hotel tariffs greater than the increase in the rate of inflation.

The Minister of State, Ministry of Agriculture, Fisheries and Food (Lord Belstead)

My Lords, the latest indications suggest that there will be a continued increase in the number of tourists visiting the United Kingdom during 1984. The British Tourist Authority estimate that over 13 million visits will be made to the United Kingdom this year compared with 12½ million in 1983. Provisional results from the International Passenger Survey for the first four months of this year show that the number of visits has increased by 12½ per cent. compared with the same period in 1983.

Lord Gainford

My Lords, I thank my noble friend for that encouraging answer. Can he tell me whether there is any additional increase to the British economy by British families taking holidays in this country, as well as the roaring trade done by British travel agents for the millions of families who go abroad during the summer season?

Lord Belstead

Yes, my Lords, there is an addition to the British economy. The balance on the travel account for the first four months of this year was £60 million, compared to a deficit of £26 million for the same period of last year. This reflects the fact that we now have a very buoyant domestic trade with an estimated increase in spending of some 19 per cent. by British tourists last year over the previous year.

Lord Ponsonby of Shulbrede

My Lords, reverting to the noble Lord's original Question, which suggested that the recent increase in hotel tariffs was greater than the increase in inflation, is the noble Lord the Minister aware that for three-star hotels and hotels of a lesser category than that the increase is no higher than the rate of inflation?

Lord Belstead

My Lords, I am grateful to the noble Lord, Lord Ponsonby, for that information. I did not have that. My information is of a slightly different kind. A recent survey covering the year to April of this year suggests an average national increase of 7.6 per cent. for a single room and 6.9 per cent. for a twin room compared with a 5.2 per cent. increase in the retail price index over the same period. But those figures take no account at all of the various discounts which are so very often offered by hotels.

Lord Boyd-Carpenter

My Lords, is my noble friend aware that at least some of the increase in hotel prices recently was due to the decision of the Wages Council to introduce compulsory increases in hotel and catering industry wages, particularly for juveniles, in excess of the rate of inflation?

Lord Belstead

My Lords, I take note of what my noble friend has said. My noble friend's supplementary question underlines the need for us to be very careful about the rate of wage increases.

Lord Avebury

My Lords, is not one of the main reasons for the buoyancy of the tourist trade the fall in the value of the pound, which has had disastrous effects on every other area of the economy in terms of the increases in prices of raw materials and finished goods; whereas the tourist trade is the only trade to benefit from this weakness in the pound?

Lord Belstead

My Lords, many factors affect the level of incoming visitors to this country. These include the state of the world economies, exchange rates and our ability to provide high quality tourist attractions and facilities. When the noble Lord, Lord Avebury, says that the one reason for the buoyant tourist trade—

Lord Avebury

My Lords, I did not say that. I said one of them.

Lord Belstead

My Lords, when the noble Lord ascribes a single reason for an increase in the tourist trade to the temporary comparative weakness of the pound I would say that it is because we offer good facilities in this country. If the noble Lord does not believe me, all he need do is go into Parliament Square and ask the hundreds of visitors to this country who are to be found there.

Lord Ponsonby of Shulbrede

My Lords, is the noble Lord not also aware that the average price of a New York hotel room in dollar terms is now very much higher than the average price of a London hotel room?

Lord Belstead

My Lords, again I am grateful to the noble Lord, Lord Ponsonby, for that question. He has, indeed, assisted me in answering effectively the noble Lord, Lord Avebury.

Viscount St Davids

My Lords, on the subject of the value of dollars, should not these visitors to our shores buy their pounds rather fast before the value of the pound goes up very considerably, as it certainly will when this coal strike is successfully ended?

Lord Belstead

My Lords, I am most grateful to the noble Viscount for the confidence he quite rightly shows in the affairs of this country.

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