§ Mr. Hicksasked the Secretary of State for Trade if he is satisfied that prospects for the tourist industry for the remainder of the current year are not being harmed as a result of the introduction of a 15 per cent. rate of value added tax; what plans he has for monitoring any changes that might occur in the extent and pattern of future tourist demands in the light of these tax increases; and if he will make a statement.
§ Mr. TebbitI have no reason to believe that the prospects for domestic tourism will be harmed by the increase in the rate of value added tax, which should not be viewed in isolation from the increase in personal disposable in-20W comes resulting from the income tax cuts proposed by my right hon. and learned Friend the Chancellor of the Exchequer.
As for overseas visitors, the international passenger survey—upon which Government statistics of the numbers of foreign visitors and their expenditure are based—will enable us to monitor any changes; and so will the home tourism survey operated by the tourist boards. Changes in the volume and value of tourism may result from other reasons than an increase in VAT. The tourist boards also, as part of their normal activity, make their own estimates of future demand, taking into account the relevant factors.