§ Mr. Tony LloydTo ask the Secretary of State for Employment (1) what dialogue he has had with representatives of the tourist industry since the outbreak of hostilities in the Gulf; and if he will make a statement;
(2) what estimate his Department has of the trend in incoming visitors visiting Britain in 1991; and if he will make a statement.
§ Mr. ForthThe most recently available estimates of the numbers of overseas visitors to the United Kingdom are for December 1990. These show a 2 per cent. increase in 1990 compared with 1989. It is too early to assess what impact the Gulf crisis will have on visitor levels this year.
As I told the House in reply to questions on 26 and 28 February, both I and my noble Friend, the Viscount Ullswater, the Minister for Tourism, have been in close 550W from additional VAT would have required about seven more percentage points on the VAT rate in that year. To produce the same net yield as the charge in 1991–92 would require an increase in 1991–92 of around six points, assuming that no change has been made to the VAT rate in 1990–91. These calculations are consistent with ready reckoner published in table 4.7 of the autumn statement 1990.