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Labour demands aid for tourism sector in crisis

SLUMP: Hotels and high streets suff er £3bn drop in visitor revenue

LABOUR has called for the government to provide financial relief to struggling hotels, hospitality venues and high-street businesses after more than £3 billion was wiped from Britain’s tourism sector this winter. 

New analysis by the opposition party shows that the amount spent by overseas visitors has dropped by 80 per cent, with businesses serving Britain’s “visitor economy” missing out on billions in revenue. 

Politicians and trade unions have warned that businesses are struggling without adequate support.

Direct grants for closed businesses are worth, at most, half what they were in the first lockdown, while those reliant on tourist income remain badly dented. 

Labour also said that the additional restrictions payment for local areas is inadequate and fails to account for the severity of restrictions.

Shadow business secretary Ed Miliband said: “Businesses across the UK are facing a black hole this winter, with billions wiped from their incomes during the crucial Christmas period.  

“Those businesses in our visitor economy face not only the effects of restrictions here but the huge loss of spend from tourism to the UK. Our hotels, hospitality and high streets will be especially hard hit.  

“Unless ministers change tack, a winter wipe-out of these usually vibrant businesses is a real possibility. The government must do the right thing and see them through to the end of this crisis.”  

Trade unions have also spoken out about the lack of support, with the GMB union warning of mass unemployment. 

A spokesman said: “Some sectors of the economy urgently need targeted support if even greater mass-unemployment is to be avoided. 

“From aviation to cash-in-transit and parts of the retail sector, government intervention is required; but ministers’ negotiations have yielded just a single agreement to date.

“A new approach is needed, and funds returned by businesses should be redistributed to the sectors where tens of thousands of jobs are at risk.”

MSPs said Scotland has also felt the effect of the drop in visitor numbers. 

Labour’s culture and tourism spokeswoman Claire Baker said more help is needed for businesses that rely on Hogmanay celebrations, as New Year’s Eve is usually one of the busiest times of the year for Scotland’s capital. 

Ms Baker added: “We cannot risk them falling through the funding cracks.”

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