Commons Sense

House of Commons · Westminster Hall

Domestic Tourism

12 January 2021 · 2 other contributors · 4,361 words

Opened by Steve Double Con St Austell and Newquay

Responding minister: Nigel Huddleston

EconomyBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Steve Double raised concerns about domestic tourism in Westminster Hall. A government minister responded.

Key points

  • The tourism sector in St Austell and Newquay, and across Cornwall, has been severely impacted by the global pandemic, with over 50% of jobs in Newquay reliant on tourism.
  • Businesses face significant challenges due to the 'three-winter scenario' where they did not earn usual revenues last summer and now confront another difficult winter.
  • The Government is asked to extend the business rates holiday for an additional year or at least six more months, extend the VAT cut on tourism and hospitality, and provide longer repayment terms for pandemic loans.

Key requests to Government

The Government should consider extending the business rates holiday for an additional year or at least six more months; extend the VAT cut on tourism and hospitality; and provide longer repayment terms for loans taken out during the pandemic. These measures will help businesses build up working capital to reopen and take advantage of pent-up demand in the coming summer.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Steve Double Con St Austell and Newquay

The tourism sector in St Austell and Newquay, and across Cornwall, has been severely impacted by the global pandemic. Over 50% of jobs in Newquay are reliant on tourism, with Cornwall's economy relying on it for almost 25%. Despite efforts to adapt and innovate during the pandemic, businesses face significant challenges due to the 'three-winter scenario' where they did not earn usual revenues last summer and now confront another difficult winter. Businesses have also faced sudden changes like moving from tier 2 to tier 3 with little notice, impacting their operations and stock management.

Other contributors (2)
  • Jim Shannon DUP Strangford

    In Strangford, domestic tourism is crucial for economic growth and job creation. It supports bed and breakfasts, wedding venues, and tourist attractions like Strangford Lough. The MP challenges others to compete with the beauty of his constituency.

  • Robbie Moore Con Keighley and Ilkley

    In Keighley and Ilkley, self-catered accommodation is vital for tourism, mentioning Upwood Park in Worth Valley and Olicana Park in Addingham. The MP asks if more support should be given to this sector.

Government Response

Nigel Huddleston

It is a pleasure to serve under the chairmanship of Mr Robertson. I congratulate my hon. Friend the Member for St Austell and Newquay on securing this debate. The tourism industry contributes over £70 billion to the UK economy, employing directly 1.6 million people and indirectly more than 3 million. In response to the pandemic, the Government introduced various measures including furlough schemes, self-employed support, loan schemes, retail, hospitality and leisure grants, and VAT cuts. Despite these efforts, urban areas continue to struggle with low occupancy rates. The Chancellor announced one-off top-up grants worth up to £9,000 per property for businesses in November 2020 and a further £594 million discretionary fund to support impacted businesses. I encourage local authorities to be generous in awarding grants to sub-sectors that have not been able to access such funds previously. As the vaccination campaign progresses, the Government will continue to stand by the tourism sector through recovery, focusing on reopening businesses as soon as possible and stimulating demand through marketing campaigns. The Government is also committed to developing a sustainable, innovative, and data-driven tourism industry in the long term.

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