HL Deb 13 November 1996 vol 575 cc932-4

2.53 p.m.

Lord Campbell of Croy asked Her Majesty's Government:

What is their estimate of the number of overseas visitors to the United Kingdom, for holidays, sport and conferences, in 1995; and what is their forecast of the equivalent number in 1996.

The Earl of Courtown

My Lords, the International Passenger Survey suggests that, out of the record 24 million overseas visitors to the United Kingdom in 1995, 10.5 million came primarily for holidays and nearly 600,000 came to attend conferences. The survey does not record the number of people coming to the UK for sport.

The British Tourist Authority estimates that, in 1996, the UK will receive 25.8 million visitors. We do not expect that the proportion of people visiting for holiday purposes or for conferences to be radically different from 1995.

Lord Campbell of Croy

My Lords, I thank my noble friend for his encouraging reply. Does he agree that there is no reason why the numbers should not continue to increase, as will the value to the national economy? Since our history and heritage are prominent attractions, is it possible to entice visitors at all times of the year, thus reducing the seasonal aspect of employment in our tourism industry, and to spread them to different parts of the country, thus avoiding the mass overcrowding and traffic jams which have detracted from cultural centres in other parts of Europe?

The Earl of Courtown

My Lords, my noble friend is quite right. The British Tourist Authority predicts that the number of visitors will increase in 1996 and that it will be another record year. That will continue the encouraging trend of recent years and suggests that we are maintaining our market share. My noble friend referred to historic attractions and all-the-year-round appeal. Great historic buildings and other indoor heritage attractions make an important contribution to attracting tourists all the year round. My right honourable friend the Secretary of State has asked the chairmen of the tourist boards to review the use that we make of our heritage attractions with all the relevant bodies.

Lord McNally

My Lords, is the Minister aware that the Financial Times estimates that the Treasury receipt from Euro '96 was some £64 million? Does that not make it extremely short-sighted that the policing of that competition was left entirely in cost terms to the local authorities concerned? If we are to attract major sporting and cultural events which bring hundreds of millions of pounds into the country and tens of millions of pounds to the Treasury, we must have a better way to police it than leaving it to the local authority where the event is to take place.

The Earl of Courtown

My Lords, I do not agree with the noble Lord. I believe that Euro '96 was a great success because it attracted 250,000 extra visitors to this country and generated revenue of an extra £100 million. One must look to the future, and the world cup is the next logical step, building on the success of Euro '96.

Lord Clark of Kempston

My Lords, does my noble friend not agree that the fact that the UK tourist industry last year attracted 24 million people, and the fact that they spent some £12 billion, is a great boost to our invisibles? Does my noble friend not agree that the attraction of the UK is not confined to tourism? Because of its competitive position, the UK is very attractive to inward investment. Would it not therefore be a folly to sign up to the social chapter and a minimum wage?

The Earl of Courtown

My Lords, I heard somebody say "planted question" but nothing could be further from the truth, although this is my number one answer. My noble friend is quite correct. That is an area of great concern to us all. As we are aware from the Statement made by my right honourable friend the President of the Board of Trade, which was repeated by my noble and learned friend Lord Fraser of Carmyllie, action is being taken on that matter.

Lord Avebury

My Lords, does the Minister agree that wear and tear and damage to historic buildings and monuments is a consequence of the number of visitors who go to see them? Is he satisfied that English Heritage takes that into account in its budget for future years in view of the expected increase in the number of tourists? Does the grant paid by the Government to English Heritage allow for that increase in expenditure?

The Earl of Courtown

My Lords, I cannot answer that question in relation to the funding of English Heritage. However, it is quite interesting to note that the Environment Select Committee of another place in July 1995 concluded that compared with other activities, tourism does not cause significant damage to the countryside.

Viscount Ullswater

My Lords, does my noble friend the Minister agree that at least 20,000 new jobs were created in tourism in the year to March 1996? Does he further agree that the industry has the potential for creating over 250,000 new jobs in tourism in the next 10 years? Bearing that in mind, does my noble friend agree that any change in that level of investment in future jobs—and I am thinking of the proposed minimum wage and the introduction of the 48 hour-week directive, which are so favoured by the Opposition—would have a really serious impact on the number of jobs and on the level of service for the future in this fiercely competitive global market?

The Earl of Courtown

My Lords, my noble friend is quite correct. It is clear that the directive would have serious implications if applied to the tourism, leisure and hospitality industries. The British Hospitality Association has said that it could affect 15 per cent. of the workforce of the hospitality industry and cost up to £100 million per year.

Lord Donoughue

My Lords, as noble Lords opposite have so inappropriately introduced politics into the matter, can the Minister confirm that the balance of trade on tourism under this Government, which was always in surplus under the Labour Government, has in fact, for the first time in history, turned into deficit? Does the noble Earl further agree that the key to the future success of our tourist industry is nothing to do with the marginal matters mentioned but lies in two areas: first, we must improve the quality of our product, mainly through investment in training; and, secondly, we must invest in marketing? Can the Minister say why the Government have no visible, coherent strategy to achieve that aim?

The Earl of Courtown

My Lords, I was glad to hear that the noble Lord considers matters of yesterday as only "marginal" as regards the business of this country. The noble Lord also commented about the deficit on our balance of trade on tourism. Of course, since we came to power in 1979, people have been able to afford to go on holiday abroad—

Noble Lords

Oh!

The Earl of Courtown

Of course, they are very lucky to be able to go abroad on holiday. Indeed, I try to do so occasionally; but I also holiday in this country. When people think of their holidays, it is just as important for them to consider visiting attractions in this country. I know that I have not answered all of the noble Lord's questions, but, if he would like to repeat them, I might try again.