Tourism (Hansard, 6 July 1989)

§ Mr. Fowler

I announced last July that I was reviewing those aspects of tourism policy for which I am responsible—the promotion of Britain overseas, and the promotion and development of tourism in England.

I have concluded that the present organisation needs to be simplified and that the industry should be more directly engaged. Government financial support for the promotion of tourism should continue, but this needs to be more sharply focused.

Within the framework of the 1969 Development of Tourism Act, I intend to work closely with the chairman and members of the British Tourist Authority (BTA) and the English tourist board (ETB), and with the chairmen of the regional tourist boards in England to make changes along these lines, to improve cost-effectiveness and to extend partnerships with the industry. Accordingly, I am asking the BTA to ensure that greater authority is devolved to its overseas regions. I shall expect the BTA to work even more closely with industry in overseas markets, and to move some of its operations into the private sector. The present head office structure should, as a consequence of these various changes, be slimmed down.

I will also expect the ETB to devolve many of its activities and direct substantially more of its funding to the regional tourist boards under a form of contract, targeting that support especially to regions where the private sector most needs such support. This would enable the RTB's to increase their marketing activities and their direct involvement in encouraging the development of tourism locally. I would expect the regional boards to use such funds as a lever to achieve further private sector participation. I shall also expect the ETB to move into the private sector activities for which that is appropriate. The ETB will continue to play an important co-ordinating role but, as a consequence of these changes, I shall clearly expect a reduction in the scale of its activity at the centre.

On 30 January, I announced the suspension of the section 4 scheme of financial assistance for tourism projects in England, pending the outcome of my review more generally. In the second half of 1988 investment completed or underway on major tourism projects in England were some £2.5 billion. Accordingly I believe that the future prosperity and growth of tourism no longer depends on this scheme. No new offers of financial assistance will therefore be made under the scheme in England. Fees for applications held over since the suspension will be returned, and all offers of assistance already made will be honoured, subject to the conditions of offer being met.

Tourism is now worth some £19 billion annually to the United Kingdom economy and the Government remain committed to this important industry.