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TOURISM SECTOR VIEW
WISHING YOU WERE HERE
Special report by Ged Henderson
Morecambe seafront
The warning from hospitality trade body chief executive Kate Nicholls could not have been starker. She told MPs the industry faces a “bloodbath” unless government support is extended.
While she was giving that grim message and calling for more to be done to protect firms from mounting rental debts, concern was also growing over the tourism industry’s ability to bounce back from the impact of the coronavirus crisis.
The two sectors have been among the hardest hit by the pandemic and the response to it. Doors have been bolted shut, businesses put on hold and jobs furloughed, with little indication when they may be able to get back to normal.
Cabinet minister Michael Gove’s pronouncement that areas of hospitality will be among the last to exit lockdown have added to the growing concern.
Almost 69 million visitors a year flock to Lancashire for its food and drink, its events and attractions, the coast and the countryside.
The visitor economy is worth £3.7bn a year to the county. That makes its recovery from the effects of Covid-19 vitally important for Lancashire’s wellbeing.
Marketing Lancashire chief executive Rachel McQueen said: “Cash flow is very hard for businesses at the moment.”
And when it comes to the possibility of extra government financial support, she added: “It is not just about riding out the immediate situation but actually being able to have funds to come out of the other side fighting.
If we are forced to
remain closed until Christmas, then I think
you could put a third of the sector at risk
“We’re at the start of the season where a lot of businesses begin to fill their bank accounts and that is not happening.
“There needs to be recognition that some businesses might need support to get through the winter. Those conversations are very much ongoing.”
There has been aid. Businesses in the hospitality and leisure sectors have been able apply for government funding administered by councils through the coronavirus Covid-19 Small Business Grant and Retail Hospitality and Leisure Grant Funds.
And like other businesses they have been able to use the Coronavirus Job Retention Scheme. It allows employers to claim 80 per cent of the wages of staff that they have furloughed - up to a maximum of £2,500 per employee wage costs. VAT payments have also been deferred.
Speaking after the government’s support package was announced, Steve Fogg, who chairs Lancashire Enterprise Partnership (LEP), said: “The interventions announced have acknowledged the pressures being felt by those in the hospitality and retail sectors by granting 12 month business rate relief and cash grants of scale to help with fixed costs, but I have no doubt more help will be needed.”
In March the government also ordered a moratorium on commercial landlord sanctions for at least three months, meaning tenants who miss rent payments because of coronavirus could keep their leases.
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