April 12, 2001. Copyright 2001. Graphic News. All rights reserved.

Tourism ÒdevastatedÓ by foot-and-mouth crisis

LONDON, April 12, Graphic News: Foot-and-mouth (FMD) disease will cost the tourism industry at least £5 billion and some companies could lose 90 percent of their business, according to the British Hospitality Association, which represents the hotel, catering, restaurant and leisure industry.

ÒThis figure puts the scale of the outbreak into perspective,Ó said the associationÕs chief executive, Bob Cotton.

A survey of the associationÕs member hotels revealed that the potential loss to the UK tourism industry in overseas earnings this spring and summer is estimated to be in the region of £3 billion, with a further £2 billion loss from domestic earnings.

Mr Cotton said that many hospitality businesses were under extreme financial pressure, with evidence of staff being laid off or working shorter hours.

Easter is set to be a disaster and summer bookings will only pick up if the crisis is resolved soon and a marketing campaign mounted to counter the bad publicity.

Travel agents say bookings have virtually dried up because the countryside is seen as Òclosed for business.Ó Analysts predict a 30 percent fall in arrivals this year -- a loss of more than £1 billion to inbound operators.

Bob Titley, a spokesman for the British Tourist Authority in New York, said: ÒEvery day we get hundreds of calls seeking information. There seems to be a perception that Britain is closed.Ó

Four million Americans visited the country last year, pouring more than £2.5 billion into the economy -- a fifth of the £12.5 billion foreign tourist-related revenue. But images of burning cattle and a lack of information about what is open are driving bookings down.

Culture Secretary Chris Smith told cabinet colleagues this week that income from tourism in parts of Cumbria and Devon is down by as much as 80 percent -- with bookings at one Cumbrian hotel falling by 97 percent. Revenue has fallen by 10 percent overall nationally.

It is becoming increasingly apparent how badly the outbreak is affecting the tourism industry -- which contributes four percent to the UKÕs gross domestic product, compared with the one percent contributed by agriculture. 

A report on the effect of the FMD epidemic in Britain from the accountants PricewaterhouseCoopers postulated ÒoptimisticÓ  and  ÒpessimisticÓ scenarios. The loss to the agriculture industry could range from a mere £500 million to £1.6 billion.

The human toll of FMD is already costing 500 jobs a week among the 2.3 million people employed in the tourism, travel and agriculture industries. Economists say the total financial cost to Britain could easily top £7.6 billion.

A hotline has been set up by Customs and the Inland Revenue to help hard-pressed businesses. The number, 0845 3000157, will be operated from 8am until midnight, seven days a week.
/ENDS
Sources: British Hospitality Association, British Tourist Authority, MAFF