Tourism, leisure and sport are fundamental to our health and wellbeing, and contribute massively to the economy. The covid pandemic, and its after affects, have had a massive impact on this market. Domestic tourism (aka the staycation) boomed whilst international tourism flatlined. We take a look at what the parties are saying in their manifestos and what the next government can do to return these industries to growth.
The tourism and leisure sectors contribute significantly to the UK economy. In 2019, pre-covid tourism-related industries generated £74 billion, equivalent to 3.6% of the UK economy
[1]. At that time the wider UK tourism industry contributed an additional £60 billion, totalling £134 billion. It supported 2.6 million jobs
[2], underpinning many local economies and their communities up and down the country. However, in 2023 according to Visit Britain, visitor numbers to the UK remains 7% down on their pre-pandemic numbers
[3].
Also closely intertwined with the tourism industry are the leisure and sports sectors with the economic and social livelihoods of millions dependent on these industries. You only have to attend a football game to see the number of people that have travelled far and wide to see their favourite team play, spending money on travel, hotels, food, drink and more each week.
Playing sport can bring direct health benefits but all three sectors can result in direct and indirect benefits on the physical and mental health and social well-being of a nation. Poor health undermines the economy and limits how the Government chooses to spend its money. A supportive policy environment from central government is not only necessary to help the industry rebound to pre-pandemic levels but is vital for it to grow. Given the inevitable need to prioritise the growth of the national economy, whichever party takes power after the election on 4 July must ensure there are policies and strategies in place to facilitate development in the tourism, leisure and sports sectors.
We have reviewed the party manifestos with a lens on tourism, leisure, and sport to understand which parties see the important role these sectors could have over the next five years, and beyond. It’s important to remember that the UK Government has little direct control over the planning system in the devolved governments of Scotland, Wales and Northern Ireland. However, there are ways in which UK-wide efforts can have direct and indirect influences over tourism, leisure and sport and the UK economy.
What do the manifestos say?
There are few headline-grabbing announcements relating to tourism, leisure and sport but from a planning perspective we do see glimmers of hope.
Both the Liberal Democrats and Labour propose to publish a land use framework. Few details have been published on what these might include but both recognise the role of the planning system, the challenges it is facing and the impact that this is having on the time and effort taken to secure planning permission for sustainable development. How this will directly impact tourism and leisure developments? We will have to see.
The Conservatives and Liberal Democrats propose to address the impact of second home ownership on local communities. The aim to restrict the growth of second homes has been gaining ground for some time and has been discussed in this
Lichfields blog by our colleagues Alexandra Gavin and Helen Ashby-Ridgway
[4]. The devolved Scottish and Welsh governments have already taken actions to seek to limit the uncontrolled spread of
second homes and short term lets[5]. There are pressures in some areas, and coupled with the need to deliver housing we expect this will be progressed in some form over the next Parliament, even if one of the other parties takes power.
Reform and the SNP propose scrapping or reducing the ‘VAT tourist tax’, a long-standing request from the industry to ensure the UK is a competitive destination for visitors across Europe. This proposition is not mentioned by Labour or the Conservatives. Whilst not completely ruled out, it is unlikely that a scrapping of the tax is coming soon.
Reform also proposes to make St George’s Day and St David’s Day a public holiday. The latter proposal is shared by Plaid Cymru. An extra public holiday, particularly at the start of the traditional holiday season, would be welcomed by most in the sector but we haven’t seen traction beyond these two small-scale parties.
The Liberal Democrats propose to upgrade the status of the tourist industry in government with a dedicated Minister of State for Tourism and Hospitality. We already have a Minister of State for Media, Tourism and the Creative Industries but media and tourism are not obvious bedfellows. A dedicated minister charged with promoting the UK’s tourism industry both in the UK and internationally would certainly help to elevate the role of tourism and the closely linked hospitality sector in the country’s economic foundations which would inevitably support recovery and growth. We suggest it should be a serious option for whoever takes control.
Turbo charging the economy?
All parties recognise the need to grow the UK’s economy and this is a necessity given where the country stands today. Some opportunities to
turbo charge the economy have been explored by our colleagues, Richard Coburn and Ciaran Gunne-Jones, in their recent blog
[6]. Overall, the manifestos focus on housing delivery, healthcare, defence and immigration. Whilst improvements to accessing nature are welcome, there is little mention of supportive tourism, leisure and sports policies which would attract a step-change in focus to support the turbo charging that’s needed.
With this lacklustre political promise, what foundations could the future Government put in place to support the tourism, leisure and sports sectors across the UK? What benefits can be realised through the planning system in England? Whilst not a complete list, we set out five immediate opportunities:
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An up-to-date national tourism and leisure strategy: Labour and the Liberal Democrats have both proposed a new industrial strategy should their parties form the next government. Whilst the tourist industry has not traditionally formed part of historic strategies, could a real focus on the tourism and leisure sector be an innovative way forward to support wider efforts? At the very least a new tourism strategy is needed. The current one dates back to March 2011
[7], supplemented by a Tourism Recovery Plan published in June 2021
[8] and March 2023
[9]. In the light of the failure to return to pre-pandemic levels, the position clearly points to the need for a full review and a new strategy.
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Recognise tourism as economic development in national policy: National planning policy is the cornerstone of the English planning system. The planning system is an important lever to grow the UK economy without the direct need to raise taxes but it needs the strongest planning policies to be in place. A key change would be to have a presumption in favour of development for economic uses where no up-to-date local plan is in place. Tourism, leisure and sports development must then be seen explicitly as having a role in delivering such economic development.
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More than rural tourism: The December 2023 NPPF mentions tourism only once with limited reference at Paragraph 88(c) rural tourism. We would like to see more support for tourism and leisure development in national policy - and not just rural tourism.
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Attracting private sector investment: Past governments have a limited history when it comes to designating and protecting locations for investment in tourism, leisure and sports at a regional or national level. We consider that the next government needs to ensure that the UK remains an attractive place for national and international investors in these sectors. The principle of having a network of strategic sites across the country that are readily deliverable and attractive could be explored.
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Resource in the planning system: Not only does the planning system need an overhaul for attracting new investment but also to ensure that existing operations can renew and evolve over time too. Tourism, leisure and sport operators commit to a location for the long term. Venues, accommodation, and attractions need continued investment to ensure visitors keep coming back week-after-week, year-after-year. The next government needs to ensure there are attractive policies in place to encourage investment by putting in place a planning system that can support decisions in a timely manner through a well-functioning process.
Given the opportunities to provide greater emphasis to tourism, leisure and sport – and the interconnections between all three, more can and should be done to support these sectors to help grow the UK economy. The industry awaits the next government’s agenda with anticipation.
[1] https://researchbriefings.files.parliament.uk/documents/SN06022/SN06022.pdf
[2] https://www.visitbritain.org/research-insights/value-tourism-england
[3] https://www.visitbritain.org/research-insights/inbound-visits-and-spend-annual-uk; https://www.ons.gov.uk/peoplepopulationandcommunity/leisureandtourism/datasets/overseastravelandtourism
[4] https://lichfields.uk/blog/2024/may/29/we-re-all-going-on-a-short-term-let-holiday
[5] https://lichfields.uk/sun-sea-sand-and-article-4-directions
[6] https://lichfields.uk/blog/2024/june/21/time-to-turbo-charge-economic-growth
[7] https://assets.publishing.service.gov.uk/media/5a78cc8740f0b62b22cbce37/Government2_Tourism_Policy_2011.pdf
[8] https://assets.publishing.service.gov.uk/media/60c239a8e90e074397d8c8b0/Tourism_Recovery_Plan__Web_Accessible_.pdf
[9] Tourism Recovery Plan: Update on delivery (publishing.service.gov.uk)
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