Tourism Industry

8. What steps her Department is taking to support the tourism industry.

Tourism drives economic growth and jobs across the country, including the Isle of Wight, and over the summer months the Great British summer savings scheme provided a temporary VAT cut for eligible businesses, to encourage visits to tourist attractions during the school holidays. At the same time, Visit Britain’s “Starring GREAT Britain” campaign is promoting film and TV locations, to inspire global audiences to explore a wide range of regions across Great Britain.

Growth in tourism requires an increase in visitor numbers so that more money is spent on the high street, not a new tax. Oxford Economics says that the cost of the overnight visitor levy will be around £1.8 billion in reduced spending, and a decrease in tax receipts, not an increase. Will the Minister confirm that the visitor economy growth strategy will consider the harm caused by the new tourism tax, and say when it will be published?

I am grateful to the hon. Gentleman, who I know is a huge champion for his constituency, and indeed on this subject. We are committed to increasing visitor numbers—he will have heard my answer to the previous question on the overnight levy, and there is a strong case for any money raised to be reinvested in tourism. As I said, I was in Blackpool last week speaking to tourism industry leaders and businesses, and far from the doom and gloom that the hon. Member alludes to, I witnessed a great deal of hope, hard work and dynamism.

We have had a good debate about the overnight stay levy and short lets, but on Warwick Way in my constituency I have seen real harm to communities because of unregulated short lets. Does the Minister agree that for the tourism industry to be a real success, hotels cannot be undermined by short lets, and that getting the registration scheme in place and the Treasury to investigate where there might be breaches of HMRC rules are important steps forward in ensuring that?

I am grateful to my hon. Friend, who has been a strong champion on this issue. It was a delight to visit her constituency earlier this year to talk and to see at first hand the problem that it creates. As the Secretary of State has outlined, this Government are committed to that register, and we know the difference it will make to communities such as my hon. Friend’s and those up and down the country.

I call shadow Minister.

The visitor economy is worth £147 billion, supporting millions of jobs, but this Government have hammered the sector with higher taxes and they now plan a holiday tax. Perhaps there is some hope, however, as on Monday the Prime Minister told the House that he wants to go further than business rate relief for pubs and music venues. Will the Minister urge him to take up Conservative policy and scrap business rates for those venues as well as for restaurants, cafes, hotels and leisure attractions, and support that vital sector?

I welcome the hon. Gentleman to his place and look forward to working with him in the coming months. He will have heard that the review of business rates for pubs and hotels announced just a few weeks ago by the Chancellor has been welcomed by a number of people, including the CEO of UKHospitality, who said it was a “positive move”. Under this Government we have seen the biggest investment in the tourism sector: the £6.3 billion Universal Studios investment at Bedford. It was a pleasure to be there a few weeks ago.