MPs slam govt for failing to recognise Covid-19’s ‘existential threat’ to tourism industry

Government ministers have consistently failed to recognise the scale of the threat of Covid-19 to the tourism, culture, sports and media industries, say MPs in a damning report published today.

They say the response by the government department responsible for all four sectors was hampered by a lack of money, as well as a fundamental misunderstanding across government of their needs, structures and vital social contribution.

The Department of Digital, Culture, Media and Sport – which also includes tourism – has one of the smallest government departments by budget and staffing. Also, it has had more changes of Secretary of State than any other. Oliver Dowden is the ninth person to take the role in 10 years.

"Our report points to a department that has been treated as a ‘Cinderella’ by government when it comes to spending, despite the enormous contribution that the DCMS sectors make to the economy and job creation," said DCMS Committee Chair Julian Knight.

"We urge the government to act on our recommendations, to recognise the value these sectors provide and imagine how much bleaker the outcome for all without their survival."

The report came as UKinbound Chief Executive Josh Croft pleaded with the Government for help after warning many operators were ‘on their knees’.  

The Report considered the effectiveness of emergency business support measures introduced by the Chancellor Rishi Sunak in addressing the needs of the sectors, in particular where such measures were due to end.

MPs were struck by the dire situations outlined by numbers of people who felt the government’s response to Covid-19 had allowed them or the industry they worked in to ‘fall through the cracks’.

The report found that international tourism to the UK had halved by April 2020 and has continued to decline, with visitor attractions including museums and galleries hit hard as a result.

Businesses face an end to the Coronavirus Job Retention Scheme (CJRS) in October, have largely depleted their financial reserves, and will have to open at a reduced capacity with social distancing measures in place, it said.

Seasonal workers in the tourism industry have been particularly hard hit, as they have ‘fallen between the cracks in the CJRS’, it said.

One of the report’s recommendations was that the Department works with the tourism sector and HM Treasury to review the measures in place to support tourism businesses and seasonal workers ‘to ensure they fully meet the needs of the sector’.

Wider criticism of the Department suggested it lacked the clout to make the difference that was needed.

Evidence pointed to a sense that once issues had been escalated to ministerial level, the government had not taken meaningful action to protect a sector nor made sector specific interventions quickly enough.

The scale and severity of gaps in workforce eligibility for government support led some to question why government as a whole, and HM Treasury specifically, had failed to respond to the needs or understand the value of the DCMS sectors during this crisis.

Collectively, the four sectors contributed £224 billion to the UK economy in 2018.

By Linsey McNeill, Editor (UK)