Events and festivals cancelled due to Covid-19 have cost Lancashire's economy £3bn

A government inquiry by a Digital, Culture, Media and Sport select committee into the impact of Covid-19 on DCMS sectors has asked all regions for their views on the effect the pandemic has had on their leisure industry.

And Marketing Lancashire’s chief executive Rachel McQueen issued a stark warning to government officials as part of her feedback into how the county has coped.

She said lessons must be learned and that the resulting "devastating impact" of the crisis "cannot be allowed to happen again".

Lockdown has closed numerous businesses, museums, galleries, theatres and nightclubs, and caused major events and festivals to be cancelled.

Among them, Lancaster and Morecambe Music Festivals, the Dukes' Play in the Park, Wray Scarecrow Festival and Morecambe's Vintage Festival have all been scrapped this year.

Marketing Lancashire, a not for profit organisation charged with promoting the county on a national and international stage, issued a survey to assess the impact of Covid-19 on tourism and hospitality businesses in Lancashire.

Local authorities including Lancaster City Council were among those to respond, as well as businesses in the leisure industry.

Of the 204 businesses which responded, 99 per cent had been negatively impacted by Covid-19, while 87 per cent had already seen a drop of more than 90 per cent of revenue, and 94 per cent were closed.

At that point, 78 per cent said they would not be able to last more than six months, and 50 per cent felt they would not last three months.

Rachel pointed to The Seafood Pub Company, an award-winning group of gastro pubs across Lancashire and Yorkshire including The Fenwick at Claughton, which announced that they had gone into administration on June 15, as one of many businesses affected by the pandemic.

And in May, we reported how one of Morecambe's landmark hotels, The Strathmore, was to remain closed after owners Specialist Leisure Group entered administration.

It is thought Lancashire could face an economic loss of more than £3billion.

"Due to the seasonal nature of the industry, many businesses would expect to recoup losses during the summer months and build up reserves to see them through the following winter," Rachel said.

"We have lost half of the season already, and despite initial claims that there would be a domestic tourism boom once the country was out of lockdown, consumer sentiment research is actually predicting a net loss of domestic tourism activity.

"And with the events and festivals that would have attracted visitors cancelled, and no clarity at all on if and when mass gatherings might be able to start again – affecting the wedding industry and business tourism as well as the cultural sector – it looks as though the industry is essentially facing three back-to-back winters.

"For Lancashire, we estimate this could be an economic loss of over £3bn.

"The crisis has had a devastating impact on a whole range of sectors and communities, but none more so than those involved intourism and hospitality.

"This is an industry that is not afraid to evolve and innovate, but unlike retail or professional services, they cannot simply switch their provision online.

"They sell experiences that are enjoyed by residents and visitors alike, and that make the British quality of life what it is. They don’t save lives, no, but they do make our lives so much richer.

"They are our true ‘soft power’. The quirks of a country pub, the thrills of a seaside theme park, the nostalgia of a ballroom, the exceptional quality of a Michelin starred meal, the joy of fish and chips on the beach.

"And yet the sector is under-valued and over-looked by Government.

"In the meantime, more and more temporary closures are becoming permanent closures, as businesses fall through the gaps of the funding support available and find themselves unable to keep going."

Rachel says in her report to the government that "an increased sense of urgency and speed of decision making at the national level" is now needed to help kickstart a recovery, as well as "a greater use of local knowledge and intelligence in national plans".

She said: "Restart and recovery must take account of the availability and capacity of public transport, the views of public health officials regarding out-of-region visitors, the sentiment of local communities towards visitors andcritically, the provision of accommodation, attractions, services and facilities in any given location.

"A campaign to stimulate domestic tourism supply and demand simply cannot be delivered at a national level. Funds for such activity need to be devolved.

"Covid-19 has fully exposed the fragility and hand-to-mouth nature of the tourism and hospitality industry, and the fragmented nature of the organisations and associations intended to support them.

"This fragility has been caused through an erosion of support over many years.

"Covid-19 will have a greater long-term impact than would have been the case if the sector was valued and supported as it should have been."

Rachel said the change from a 2m rule to 1m would make a massive difference to many businesses.

Seated restaurants operate at 65 per cent capacity at 1m, but just 34 per cent of capacity at 2m.

Standing areas in pubs could take 50 per cent capacity at 1m, but just 25 per cent at 2m.

"Many tourism and hospitality businesses have struggled to adapt to the crisis," she said. "Whilst it is arguably easy for the retail sector to switch from physical stores to online sales, much of the tourism and hospitality industry is simply unable to do so – you cannot experience a theme park online, you cannot enjoy an online overnight stay – yet those businesses least able to trade during the lockdown are those that were closed first, and are being allowed to open last.

"There is no one-size-fits-all for this wonderfully diverse sector. It is made up of multi-million pound companies employing thousands of people and micro businesses creating bespoke, memorable experiences.

"We need to ensure that we don’t lose this diversity, it is why Britain has been so successful at tourism to date, attracting the millions of visitors that we do.

"The value of domestic tourism is also hopefully now understood. We need to support the sector to become more productive and resilient to any future shocks.

"Covid-19 hit and Government was slow to react, particularly to create targeted support programmes that were relevant to the tourism and hospitality sector.

"They did not know what the sector needed because they did not understand it and they did not value its worth.

"We need to evolve a mindset, this cannot be allowed to happen again."