Cumbria’s tourism businesses are on a knife-edge and need extra government support, the county’s tourism chiefs said.
The introduction of the COVID-19 tier system across the UK and areas across the North West being designated as Tier 3 – those with a very high risk – plus reports from tourism businesses that even before the introduction of the the three tier system they had lost on average 46 per cent of their usual income, has prompted Cumbria Tourism to call for more support for the county.
It wants to see high-level talks to agree an appropriate package of support for Cumbria to include, as a minimum extending the furlough scheme from November, along with extended rate relief for 2021/22 and continuation of the VAT reduction for hospitality businesses beyond next March.
With South Yorkshire and Greater Manchester now set to join Lancashire and the Liverpool City Region in Tier 3 of the COVID-19 regulations, tourism and hospitality businesses across Cumbria are seeing tens of thousands of pounds worth of lost bookings ahead of the vital October half-term holidays, Cumbria Tourism said.
There are also fears that tighter local restrictions are potentially on the cards for other core domestic tourism markets, including West Yorkshire and the North East.
Cumbria Tourism says the knock-on effect of people from Tier 3 areas being asked not to travel is having a potentially devastating effect on COVID-safe tourism operators, who have collectively already seen more than £1.7billion-worth of losses this year.
That is alongside additional travel restrictions for Tier 2 residents and the existing Rule of Six and 10pm curfews for pubs and restaurants.
It comes as the results of Cumbria Tourism’s latest business tracker survey reveals:
- Even before the introduction of the three-tier alert system, Cumbria tourism businesses had lost – on average – almost half of their usual income (46%).
- 70 per cent of businesses now say they plan to reduce staff hours, up from a quarter just six weeks earlier.
- Almost a third of businesses now plan redundancies, up from 23 per cent of businesses at the start of September, and 13 per cent in mid-July.
- Almost half (46 per cent) of tourism businesses are not confident about surviving the next six months, until the end of March 2021.
- 70 per cen of tourism businesses say they still need financial assistance in the form of grants.
“We now have the worst of both worlds,” said Gill Haigh, managing director of Cumbria Tourism.
“Although we welcomed the Chancellor’s winter support package just four weeks ago, the situation has deteriorated rapidly and urgent action is needed to support viable successful businesses who are now seeing a steady stream of cancellations – with forward bookings falling away rapidly.
“Cumbria tourism industry is heavily reliant on visitors from the North West, North East and Yorkshire, so to lose potential visitors from these areas has a massive financial impact. Even in other parts of the country, where travel restrictions are less strict, consumer confidence is plummeting and there is massive uncertainty about whether people should book their well-deserved trips away.
“Some of the feedback we are receiving from businesses is simply heart-breaking. These are hardworking, resilient people who have made monumental efforts to adapt, re-open and trade in COVID-safe way. But businesses and livelihoods are at real risk this winter, and there is a clear need for additional wage support and cash grants to protect Cumbrian jobs, communities and the wider supply chain to help the sector bounce back next year.
“Cumbria Tourism is now urgently seeking a joint meeting with Cumbria’s six MPs to call for action. As well as liaising directly with government officials, VisitEngland and the Department for Digital, Culture, Media and Sport, we are also joining forces with other Northern destinations to make a collective plea for support.”
