My Lords, tourism is a vital component of the UK economy, and is predicted to be a key part of our economic recovery and of future job creation. The tourism industry is predicted to grow at an annual rate of 3.8% until 2025, which is significantly faster than the overall UK economy. The sector supports more than 3 million jobs, which is 9.6% of all UK jobs. The benefits are spread around the UK. They are driven by domestic tourism spending at places including attractions and the seaside.
The British Association of Leisure Parks, Piers and Attractions represents this sector, and it helped me put together this amendment. Most of the tourism spend comes from domestic tourists on day trips, which is the demographic that visits BALPPA’s attractions. In 2012, the expenditure on overnight domestic tourism trips in Britain was valued at £24 billion, and a further £57 billion was spent by domestic tourists on day trips. Summer holidays are crucial to this, but other holidays in the warmer months with longer days are also very important. This is because takings at attractions are much better when days are longer and, of course, when the weather is more pleasant.
These times are also crucial because they are the only ones when families, who are the core part of these attractions’ business, can go away together. This period is vital, because attractions and seaside areas then have to survive the winter, when tourism falls away. Many attractions close during that time, and so their takings in the winter are nil. If the weather is bad over just one or two weeks in the summer, that can be the difference between making a profit or a loss.
In April last year, Michael Gove made a speech at a conference at which he said that he wanted to reduce summer holidays from six to four weeks. A few weeks later, on 1 July last year, the Deregulation Bill was published and included a clause enabling this. Clearly, the Department for Education would not be advocating this clause if it did not expect some schools to use it. It would cause chaos for families with children at different schools that have different holidays. Even a single group of schools changing term times in a single area would have an impact on the tourist industry. Clause 51 and Schedule 15 are of deep concern to the tourism industry.
Where similar schemes have been introduced in the US, the evidence clearly shows that moving school holidays reduces tourism spending, which is not made up elsewhere. In Pennsylvania, moving the school year to start before Labor Day—which is the first Monday in September—had a dramatic negative impact on economic development and employment, costing the Pennsylvanian economy more than $378 million annually. In South Carolina, the move was estimated to have a $180 million impact on the state, and more than $8 million was lost in tax revenues. In Texas, returning to later school start dates resulted in higher direct tourism expenditure, estimated at $251.9 million per year, and 6,635 more permanent jobs. This is despite the actual number of instructional days staying similar. Eleven US states have now seen fit to introduce laws which mandate school years because they appreciate that there are economic benefits.
Surely all the above merit some consideration in detail about what the impact of these changes would be, yet no assessment has been made. The Department for Education, in advocating Clause 51 and Schedule 15, has singularly failed to engage with the tourism industry which feels strongly about this. The DCMS has admitted that there has been no evaluation of the policy’s impact on tourism. On 30 October, Kate Green MP asked,
“the Secretary of State for Culture, Media and Sport, what assessment his Department has made of the potential effect of deregulating school holidays on (a) tourism jobs in seaside areas and (b) seaside economies”.
Mrs Helen Grant replied:
“There has been no specific assessment of the impact the Government’s proposals in the Deregulation Bill will have on tourism jobs. However, impact assessments have been completed on the overall impact of proposals within the Bill. Government is confident that tourism jobs and seaside economies will not be adversely affected overall. Whilst the measures will extend an existing flexibility to a greater number of schools, this does not mean that all schools will change their term dates. This Government believes that decisions about term dates are best made locally. The Department for Education is working with the British Association of Leisure Parks, Piers and Attractions and others to ensure the Department’s advice to schools on their new freedoms is clear that term dates should be set in the interests of pupils’ education and should also consider parents and local businesses”.
That is quite a miraculous statement. We all know that the Government are confident that they will not be adversely affected overall. That is an answer that does not exactly fill me or the tourism industry with confidence. Throughout the Bill’s progress, tourism representatives have been raising strong objections that their concerns have not been addressed. The unintended consequences associated with passing these provisions are enormous. They should not be included in the Bill until their impact has been properly evaluated. I beg to move.