Support for North East tourism industry "crucial" among predictions of £1.4bn losses

A North East organisation has said that the region’s tourism industry needs more support throughout what is usually its peak period.

At the start of English Tourism Week (25 – 31 May), tourism bosses are urging the government to continue to support the industry until businesses can trade profitably.

They are calling for more flexibility in the furlough scheme with many businesses unlikely to be able to operate at full capacity for many months to come.

The Government recently announced that the very earliest most tourism businesses will reopen is the beginning of July.

By then, NewcastleGateshead Initiative predicts that the industry will have already seen direct losses of more than £1.4bn.

Sarah Green, chief executive of NewcastleGateshead Initiative, commented: “In normal circumstances, we would have been celebrating a busy bank holiday weekend with visitors flocking from far and wide to enjoy Magic Weekend and This Is Tomorrow Festival.

“Instead we are in a position where many of our tourism businesses have now been shut for two months and the earliest hope of reopening is the beginning of July.

“Over the coming days and weeks we will begin to see how the government will ease the restrictions placed on the tourism industry and how support measures change.

“We await confirmation of these measures but it is clear that the industry needs continued support and greater flexibility in regulations to allow for businesses to operate in the new world that we will find ourselves in.

“Crucially we need clear and consistent messaging from the government around the visitor economy and what the public can and can’t do.

“The impact of tourism is far greater than just economic - the sector also plays an important role in changing perceptions of the region.

“In turn, this supports the government’s levelling up agenda by driving inward investment and capital development to the North East.

“Our cultural attractions are key motivators for the region as a place to live and underpin what is special about the North East.

“Half of the businesses that we have spoken to told us that they only have enough cash reserves to last three months and with the potential forced cancellation of the summer season, we now face the devastating prospect of business closures and job losses.

“The tourism sector works as an ecosystem and unfortunately losing businesses or capacity has a disproportionate impact on the attractiveness of a visit to the North East.

“Those who do survive will probably have to adapt their businesses to reassure and protect employees and the public.

“It is likely that they will also initially be working with reduced capacities and an inability to generate previous income levels.

“It is therefore crucial that the industry gets as much support as possible as we head towards reopening.

“Now, more than ever, we need the support of the community to help our local businesses.

“We are encouraging everyone to share their favourite memories of our amazing region and start a conversation around what they are looking forward to seeing and doing when they can.

“These memories, whether words, images or videos, will go some way to help our tourism industry to be in as strong a position as possible whenever it is safe to reopen.”