HC Deb 18 July 1988 vol 137 cc475-6W
Mr. Rowe

To ask the Secretary of State for Employment if he will make a statement on the arrangements for Government support for the tourism industry.

Mr. Fowler

The tourism industry is now one of Britain's largest and fastest growing industries. In 1987, a record 15.4 million visits were paid to the United Kingdom from overseas. The total turnover of the industry was some £18 billion. A total of 1.4 million people work in the main tourism-related sectors. An additional 41,000 jobs were created in the year to December 1987, and turnover rose by some 5 per cent.

The importance of tourism is now more widely understood than it was a few years ago. That, in large part, is due to the efforts of the industry itself. It is also due to the work of the English tourist board, the other national tourist boards, and the British Tourist Authority, and to the work of Government in supporting the industry, described in a series of publications of which "Tourism '88" published in May, is the fourth.

Given the degree of interest there now is in tourism, the degree of support for it, and the changing nature of the

Social Fund 11 April 1988 to 30 April 1988 1 May 1988 to 31 May 1988 1 June 1988 to 30 June 1988
Budgeting loans awards 3,229 20,808 34,903
expenditure £ million 0.64 4.4 7.6
Crisis loans awards 15,753 24,765 28,279
expenditure £ million 0.7 1.0 1.2
Community care grants awards 1,542 4,769 6,783
expenditure £ million 0.3 1.1 1.7

industry, the time is right for the Government to look at their policies to see that they are as relevant as possible to the current situation. I am therefore setting in hand a review of the role of Government—in particular of my own Department—in relation to the tourism industry, which I expect to be completed by the end of this year.

The Government continues to recognise the importance of the industry, and remains committed to providing the economic and regulatory framework within which the industry can prosper. The levels of funding by my Department; the mechanisms by which these funds are applied; and the implications for the British Tourist Authority and the English tourist board and their activities will obviously have to be considered by the review against the background of the wider role of Government and their wish to see such activities carried out in the private sector wherever possible. The review will also clearly need to consider the cost-effectiveness of this funding in a climate where continued expansion of jobs and business is anticipated.

My right hon. Friends in Scotland, Wales and Northern Ireland have their own arrangements for tourism and the review will not be looking at these and how they apply to their national tourist boards, although clearly my right hon. Friends will be interested in the outcome of the review.

I have also consulted the chairman of the BTA and ETB, who has assured me of his full support and co-operation, and the review will take account of the boards' views.

There is every indication that tourism will continue to grow in importance to the economy and for the creation of jobs. This review will help the Government to continue creating the framework for that to happen.