Tourism Industry and VAT Debate

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Department: HM Treasury

Tourism Industry and VAT

Anne Marie Morris Excerpts
Tuesday 17th March 2015

(9 years, 2 months ago)

Westminster Hall
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Mark Williams Portrait Mr Williams
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I am grateful for that intervention. My hon. Friend is right: the name “English riviera” speaks for itself about the importance of the tourism sector to his constituency. He is right that more generally it would benefit just about all component parts of the UK: cities and rural areas alike. That is the spirit in which the debate and the Cut Tourism VAT campaign’s call has been made.

Anne Marie Morris Portrait Anne Marie Morris (Newton Abbot) (Con)
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Does the hon. Gentleman agree that there is perhaps a particular challenge in those parts of the country that are overly dependent on tourism? In the south-west, tourism is a substantial part of our economy.

Mark Williams Portrait Mr Williams
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My hon. Friend is right that the debate has a strong, important regional dimension. That is borne out by the representatives here today.

Such is the nature of the debate, with it being a few weeks before Dissolution, that it could be something of a damp squib. However, I would rather raise this matter with the Minister before the Budget than after it. In many ways this is an opportune moment to remind ourselves of the importance of the tourism sector. In Wales, we are celebrating Wales tourism week in which thousands of our local hoteliers and attraction owners will be showcasing what Wales has to offer. What better way is there not just to celebrate what is happening in the industry at the moment, but to promote its opportunities for growth? That is what the debate is all about.

The tourism sector currently contributes £3.1 billion to Wales’s GDP, which is 6% of its total. It also accounts for 8% of jobs in Wales—a huge number. When we add in those supporting businesses down the supply chain, we see that the sector contributes about £7 billion to Wales’s GDP, which accounts for 14% of the Welsh economy and 15% of jobs.

Quite rightly, the promotion of the Welsh tourism sector is a devolved responsibility. Visit Wales does a lot of excellent work in promoting the Principality, but on VAT it is the Treasury and this place that has primacy and that is why we are asking for action. The debate is about sustaining the tourism sector, but, critically, it is also about growing it. I believe that this could give the industry the financial jolt that it needs.