* Jim Jones, chief executive of North Wales Tourism.
Around 10,500 jobs will be lost in the tourism and
hospitality industry in North Wales even if it’s allowed to start trading again
on July 1 – with another 2,000 at risk if it’s a month later.
That’s the stark conclusion of a survey conducted
by North Wales Tourism with support from the North Wales Mersey Dee Business
Council.
More than 320 businesses from across the region
responded to the survey this week about the dire impact of the Covid-19
lockdown.
The analysis showed that when they’re allowed to open,
60 per cent of them will be trading at 50 per cent or less capacity with the
current social distancing guidelines.
The study looked at the impact of two different
scenarios, reopening on July 1 and August 1, assuming the two meter social
distancing rule was in place, that there were no domestic travel restrictions
within the UK and that the UK Government furlough scheme would end in October.
According to Jim Jones, the chief executive of
North Wales Tourism, the survey had underlined the “cataclysmic” impact the
pandemic was having on the sector.
He said: “If businesses are allowed to open on 1st
July, average turnover loss for the year will be 58% and the forecast is for
10,500 job losses which represents 25 per cent of those currently employed in the
sector in North Wales.
“If the opening date is delayed to August 1, the
number of job losses increases by approximately 500 a week to 12,500 for the
year, or around 30 per cent of the people employed in the sector.
“These job loss forecasts do not include job losses
in the businesses supplying into the tourism sector.
“Not surprisingly, nearly half of businesses are
very concerned about their financial viability opening under current social
distancing rules which would mean additional costs and reduced capacity.
“The results of the survey present a very stark
picture of the impacts on the tourism sector, even if businesses are free to
open.
“The figures suggest that reviews of both a
continuation of the furlough scheme beyond October for the tourism sector and the
two metre social distancing rule are carried out, if these major job losses are
to be avoided.”
It was a sentiment echoed by Ashley Rogers, the
commercial director of the North Wales Business Council.
He said: “The tourism sector responded with incredible
speed to this call for live feedback on what is likely to happen in North Wales
and should be applauded for their support.
“We
will now work with North Wales Tourism, Business Council members and partners
in the public sector to see how we can use this valuable data, to best support
the region.”
Continuum
Attractions CEO, Juliana Delaney said “If the closed sign is not removed from
the Tourism sector in Wales, it will jeopardise both this and next year’s
season. That would be an economic car crash for Wales”.
Sean
Taylor, President at Zip World UK said "I appreciate there is a lot of
pressure on the First Minister at the moment from different opinions throughout
Wales. I’m hopeful that the First Minister has the confidence to lift the 5
mile restriction on Friday and allow the Welsh Visitor economy to avoid a
catastrophic economic depression. This will be based on consumer, community and
staff confidence."