VALUE ADDED TAX AND TOURISM

That this House values the key role of the UK tourism sector in helping the UK to emerge from recession; recognises its role in providing jobs in areas with high levels of unemployment; notes that the German and French governments have recently taken action to assist their tourism sectors by implementing targeted reductions of value added tax (VAT) with Germany cutting VAT on hotel accommodation to seven per cent. and France cutting VAT on restaurant food to five per cent.; further notes that France has for many years enjoyed a reduced rate of VAT on visitor attractions of 5.5 per cent.; acknowledges the research by Graham Watson and Mike Nevin which shows that a targeted VAT reduction on accommodation and attractions in the UK would result in the creation of 23,000 new jobs and additional revenue to the Exchequer of 600 million a year; believes such measures would be an important tool to assist the recovery from economic recession; and urges the Government to give urgent consideration to similar targeted reductions in VAT in the UK.