Tourism (Consultants' Review) (Hansard, 16 March 1983)

§ Mr. Sproat

Estimates for 1983–84, published yesterday, included in the Department of Trade's Vote a provision for tourism which was prepared before I had reached my conclusions on the review of expenditure by the British Tourist Authority and the English Tourist Board carried out by the consultants Arthur Young McClelland Moores and Co. I have now completed my study of the consultants' report, and concluded that it is possible to make significant reductions in the published grants-in-aid to the BTA and the ETB for 1983–84, while in fact improving and increasing their ability to carry out what they were originally intended to do under the Development of Tourism Act 1969.

My hon. and learned Friend will be glad to know that, in view of the great importance which this Government place on developing our tourist industry, the total sum available for the Department of Trade's suupport to tourism in the coming financial year should be maintained at the level shown in the Estimates, but that the expenditure on individual elements of support will reflect a substantial change in priorities, and a redeployment of resources.

I intend to achieve these substantial improvements, with the agreement of the BTA and the ETB, by making a start in cutting out areas of waste, non-priority activities, overmanning, and needless duplication of effort by both boards and by redirecting the resources elsewhere towards the promotion of tourism.

As regards the BTA, I intend to see increased the proportion of money which the BTA spends on promoting Great Britain abroad, which is its prime role, and to cut the amount of executive time, energy, and money which it spends within Great Britain, often duplicating work done, or which could be done, by other boards, organisations or by the trade. I have told the BTA that I wish it to withdraw from a range of activities within this country. For example, I have asked the BTA to withdraw completely from "Britain in Bloom", and other activities which I shall detail to it, and to close its information centre in St. James' street. For the BTA, the basic grant-in-aid for the next financial year will be £15.5 million, compared with £17.6 million shown in the Estimates published yesterday. There will be a consequential reduction in staff. The BTA will now be discussing the employment implications with its staff. However, I have also invited the BTA to propose an additional programme of overseas promotions, for which I intend to provide up to £1 million in 1983–84, making a total grant in aid of £16.5 million.

194W

As regards the ETB, I have asked it, similarly, to change the balance of its activities, and to redeploy resources so that less money is spent on administration and on non-priority activities. For example, I have asked the ETB to withdraw its financial support from all point of entry information centres, except the one at Victoria station, London, which is operated by the London Tourist Board. The ETB is exploring what alternative financial arrangements can be made for the other centres affected. The ETB will increase the subvention to the regional tourist boards in England during 1983–84.

The ETB will give additional funds in particular to the London tourist board, whose role as the board presiding over this country's single most important tourist destination—a magnet for attracting tourists to the United Kingdom who, after visiting London, spread out to other parts of the country—I regard as especially important.

The ETB's grant-in-aid in 1983–84 will be £8 million as compared with the £9.7 million shown in the Estimates. There will be a consequential reduction in posts. The ETB will now be discussing the employment implications with its staff. At the same time, however, I propose to increase the amount of money available, through the ETB, to the tourist industry, under section 4 of the 1969 Act, from £5.3 million to just over £8 million in 1983–84. This should be of substantial benefit to the private sector and to local authorities' tourist projects.

Both the BTA and the ETB will now be submitting their detailed operating budgets for 1983–84 on the basis of these new figures.

This parliamentary answer must be seen in the context of further, far-reaching proposals I have in mind for the development of tourism in Britain. There is an increasing awareness that tourism will play a vital part in Britain's economic future. We must ensure that new resources flow into tourism and leisure development, and that our tourist institutions are in a position to meet new challenges. I shall return to the fundamental steps needed to put the growth of tourism on a sound footing in a future statement, giving my conclusions on these and other aspects of my review, next month.