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'Devastating': UK tourism companies react to tighter shutdown rules

Even in Britain's 'honeypot' destinations, like the Lake District, the future looks bleak - Getty
Even in Britain's 'honeypot' destinations, like the Lake District, the future looks bleak - Getty

Today, as Britain reels from the news of a heightened shutdown, travel and hospitality companies across the country have warned of the turmoil that it will impose.

Even in regions where staycations are booming, the outlook is dire: almost half of tourism-related businesses across the Lake District, for example, say they are not confident of survival over the next six months.

Responding to a survey by Cumbria Tourism, two thirds of businesses also warn of potential longer-term closures, while 23 per cent say they will be forced to make redundancies after the current furlough scheme ends. By adhering to Covid-safe protocols, many tourism-related companies have been unable to open in a ‘viable’ way – and now, under yet tighter restrictions, the future looks more uncertain than ever.

Speaking exclusively to The Telegraph, hoteliers, attraction owners and travel professionals all over Britain have explained what a second lockdown could mean for them. And though their locations, specialisms and business sizes vary, their message is clear: it will be devastating. How many more knocks can this ailing industry withstand?

‘We’ve just started getting back on our feet’

Over the past few months, travel businesses have adapted admirably, introducing ‘new normal’ protocols with minimal official guidance. How to operate at a safe (ie lower) capacity while still turning a profit? It was an impossible conundrum that many business owners faced – and now, the goal posts look set to move once again.

“We have just started getting back on our feet and adapting to the new ways of operating,” says Peter Rollins, the director of marketing and communications at Thermae Bath Spa. “We understand the rationale behind the imposition of restrictions, but it would potentially have a devastating impact on our business and Bath’s hospitality sector.”

Thermae Bath Spa - Getty
Thermae Bath Spa - Getty

Every week seems to bring news of another high-profile Covid casualty: the loss of STA Travel, the closure of Cheddar Gorge, the warning from Butlins that 1,000 jobs are at risk. And these are big household names – what of the new businesses, suddenly caught on this rollercoaster?

Edith Farnworth, owner of By the Wye glamping, knows all-too well. “We opened our new treetop glamping site on July 31 – having already delayed our opening due to Covid-19. We have been fully booked from day one, with families desperate to get away for a staycation.

“But a half-term lockdown would be financially devastating for our fledgling tourism business, as well as the local rural economy which relies on the tourist industry.”

When holidaymakers become law-breakers

Last week’s announcement of the rule of six, which rendered many UK staycations illegal, has taken its toll on large self-catering property bookings. But other travel companies, too, are feeling the pinch: “Clients with families who have trips booked have already begun to look at cancelling,” says Duncan Greenfield-Turk, managing director of UK tour operator @luxurylondonguy.

“It has been a huge blow to consumer confidence. There is concern amongst clients for the second lockdown and what will or won’t be possible – and whether they might be penalised if they're forced to cancel at short notice.

“This, in turn, will of course impact the business financially – but we are positioned well to weather the storm a little longer.”

In Bath, Guillaume Lesage – general manager of No.15 Great Pulteney hotel – says he has “been hopeful of viable performance in the months to come” as the property books up for late-summer staycation – but the future is still uncertain. “Consumer confidence is dented by not knowing how to plan ahead, particularly with half-term and the festive season now the focus for many.

“We will always act responsibly, but constricting and then later re-activating operations at short-notice takes time, is costly and involves a lot of organisational detail for a luxury hotel.”

More resilient than you might think?

Susan Briggs, owner of the Tourism Network – which supports over 2,000 travel and hospitality companies across the country – says that the staycation boom has at least provided some short-term relief. “Since local lockdowns were announced there have been spikes in visits in non-lockdown areas, seemingly visitors enjoying a last chance for 'freedom' before stricter controls,” she tells Telegraph Travel.

“A second lockdown will have a grave impact on tourism businesses, as they were hoping to extend the season to counteract earlier losses. Many are calling for extended furloughs – but even though this would be good for some, many businesses are owner-operated and not eligible.”

But UK tourism is more resilient than you may think, says Briggs. “Independent tourism and hospitality businesses have already shown their willingness and ability to adapt and bounce back – and the public have shown they really enjoy and value UK destinations, perhaps more than for many years.

“Those businesses that can withstand the likely initial losses from another lockdown will eventually benefit from latent demand.”

The prophecy may well prove true – but for many British travel businesses, it will simply be too late.