Tourism in Cornwall and Devon at ‘lowest point in 10 years’

Tourism in the South West is at its “lowest point in 10 years”, according to a regional industry expert.

Tim Jones, chairman of the South West Business Council, said businesses were facing ongoing staffing challenges and the cost of living crisis was affecting visitor numbers.

Around 17 per cent of pubs and restaurants in the region have closed and the sector “has gone from around £10bn to around £1bn at the moment”, he added.

Tourism businesses have had their say on what they would like to see from the next government following the July 4 general election.

Nelya Bradbury runs the Quies Hotel in Newquay and said bookings would increase if public transport was improved.

She said: “For the business to work we have to be more than 90% occupied and we can’t drop the price below £100 a night or we don’t make any money.”

The hotelier added that her customers often highlighted the cost of the train journey to the resort.

She said: “Cornwall really needs investment in transport. The rail connection is terrible.

“It’s a very high price and it’s cheaper to fly abroad to Spain, Italy or Portugal.”

Alex Trumble has been running the Babel Fish English Language School since 2012, with around 80 students hosted by several local families at a time.

The 47-year-old said: “I would like to see more grants for small businesses trading internationally. That would help us advertise to those people.

“They come here and spend a lot of money.”

Jon Hyatt, general manager of Hendra Holiday Park in Newquay, said he was expecting a busy summer with around 3,500 guests staying at the Newquay site each night during the peak holiday season.

“What we would like to see is for economic stability and consumer confidence to return, overcome the cost of living crisis and give consumers the confidence to spend money on that well-deserved holiday.”

Sally Everton, from Visit Devon, said tourism was “vital to Devon’s overall economy”.

She added: “The industry is now focused on the summer and the need to support companies and the sector to ensure bookings take place and we get a good rest of the season.”

Reducing the tax burden and gaining better access to labor are high on the tourism industry’s general election shopping list.

One tax in particular is important: VAT.

For a short period during the Covid pandemic, hospitality VAT rates were reduced from the standard rate of 20% to just 5% – “stimulating demand and generating revenue”, according to industry body UK Hospitality.

While some MPs in the last parliament supported the industry’s campaign to cut it for good, the plea has fallen on deaf ears in government and there is no indication that any of the major parties intend to do so.

Brexit, combined with Covid, has made it harder for tourism and hospitality businesses to hire overseas workers – who many say they rely on to fill staff vacancies.

The current government has recently tightened immigration rules further, and the Conservatives have said they will reduce the number of visas issued to migrants if re-elected.

Labor is also committed to reducing immigration and, like the Conservatives, places a strong emphasis on upskilling British workers.

The Lib Dems, however, say they will introduce a “more flexible merit-based system for work visas, working with employers in each sector to meet specific needs”.

The Green Party says it would “implement a fair and humane system of managed immigration”.

Reform Britain promises to ‘freeze non-essential immigration’.