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UK tourism faces ‘perfect storm’ through lack of government support, Labour claims

Labour’s shadow tourism secretary warns today (Tuesday) that the sector faces a “perfect storm” due to lack of government support.

In a speech to the Tourism Alliance, Jeff Smith MP will highlight a sector grappling with a slow recovery from Covid, the impact of the cost of living crisis, rising energy bills and inflation, and a lack of focus and support from Whitehall to compete in the international tourism market.

He will reveal analysis from the House of Commons library showing that more than 130,000 jobs in tourism-related businesses have been lost since 2019.

Inbound visitor numbers are still significantly lower than before the pandemic. 

And while VisitBritain forecasts that UK tourism will not return to pre-pandemic levels until 2025, those predictions were made before the energy crisis and rising cost of living started to bite.

Visitor spending also remains 10% below May 2019 levels.

Smith will promise a focus on helping tourism to grow sustainably, tackling barriers to trade, and working with the sector to drive prosperity in rural and coastal communities across the country, as well as towns and cities.

He will also highlight Labour’s plans to support tourism businesses, including a pledge to cut and eventually scrap business rates, replacing them with a new system “fit for the 21st century” to provide vital relief to UK tourism businesses.

Smith said: “Our tourism sector is a British success story. People travel from around the world and across the country to experience our remarkable cultural heritage and world-renowned live events – British attractions, British music, British sports, British fashion, British theatre and shows.

“But the sector is facing a perfect storm, the government continues to hold back its recovery from the pandemic, and rising energy bills and the cost of living begin to bite.

“Labour in government will give tourism the focus and recognition it deserves, listening to the experts and building a new partnership to address these challenges.”

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