North East tourism industry faces huge losses if coronavirus lockdown continues

People in the region are being asked to share pictures of their favourite places in the North East on social media using the hashtag #SupportNEtourism

Tourism bosses in the North East are warning of massive losses if the coronavirus lockdown stays in place during the key summer season.

The bank holiday weekend should have seen thousands of visitors come to the North East for the Magic Weekend rugby league event and the This Is Tomorrow music festival.

The two events brought a combined 100,000 people to Newcastle last last time they were held and had an economic impact of more than £8m.

However, the loss of these and other events - plus holidays and day trips which support tens of thousands of jobs in the North East - are set to cost the region billions of pounds.

Recent studies show that tourism industry is worth £5bn to the North East economy and supports 66,000 jobs, having grown significantly in recent years.

Yet it has been warned that maintaining lockdown until July would cost the region nearly £2bn and more flexibility is needed in the Government’s furlough scheme for businesses that are unable to operate at full capacity.

Sarah Green, chief executive of NewcastleGateshead Initiative, said: “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 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.”

NGI research highlights concerns not just about the current tourism industry, but also future plans, with worries that some of the 10 hotels being planned or built in Newcastle could be delayed or cancelled outright.

The Gateshead Quays development, which would see a conference centre and arena being built between the Sage and the Baltic, depends on a return to business tourism.

Some of the problems facing the wider tourism industry were highlighted at the end of last week when holiday firm Specialist Leisure Group - which operated a number of coach tour operators and three hotel chains - went into administration.

The company was a key support for tourism businesses around the UK as it brought customers - often older - outside of the normal summer season.

The call for support for the tourism industry comes during English Tourism Week, which would normally have seen visitor attractions marketing themselves in anticipation of the peak summer season.

Tourism bosses are now calling on people to support the sector by sharing pictures or videos of their favourite places in the North East on social media using the hasghtag #SupportNEtourism.

The North East tourism industry has grown in recent years to boast around 90m visitors a year.

A bid was being drawn up for the region to become one of the Government’s pilot areas to further develop the sector in the hope of creting more jobs.

But Ms Green said: “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.”