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Clock is Ticking for Indoor Hospitality and Tourism Firms

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Commenting on the ongoing closure of hospitality and tourism businesses in Wales, Ben Francis, FSB Wales Policy Chair, said:

“The clock is ticking for hospitality and many tourism firms in Wales, and the First Minister must respond to this with the urgency that it requires.

“These firms have in many cases been completely closed and unable to earn any income since March, and are now imminently expected to contribute to the furlough scheme in August whilst still, currently, unable to open and earn the money the need in order to do this. Firms are already making incredibly difficult decisions about their staff and their future, and they are doing so whilst receiving absolutely no direction or a timeline from Welsh Government.

“If Welsh Government believes that it is not yet safe for indoor tourism and hospitality firms to reopen then we respect that they will not take these decisions lightly, and will do so based on public health advice. However, there is a reality that firms are facing a crisis, and that Wales hugely relies on these firms to ensure our economic stability and prosperity. Some of these firms operate in some of the least economically diverse areas of Wales and provide vital jobs and local investment, not to mention attracting visitors. If Welsh Government believes that these firms still cannot reopen then they must reassess what level of extra financial support these businesses require.

“Whilst the Economic Resilience Fund was very welcome, businesses who are unable to trade will not be able to make this money last forever.

“There is also the matter of the potentially significant cost of making a business such as a pub or restaurant compliant with social distancing rules. Putting up screens, installing temperature scanners and technology for capturing the personal details of guests could prove incredibly costly to a business that has been closed for some time. It’s worth remembering that there are now many hospitality firms who are open in England but not Wales, and therefore can rely on income from their other sites to help meet this cost. Independent businesses will rarely have this opportunity, and so we are disappointed that Welsh Government has not considered our suggestion of a Social Distancing Grant Fund.

“The situation facing indoor hospitality and tourism firms is as serious as it could possibly be, and Welsh Government need to demonstrate that they recognise this. We reiterate our call for the First Minister to publish a timeline for reopening these firms at the review this Friday.

“We have reached a point where we must take decisions that will protect the future our economy, of which Wales’ smaller firms are the very heart.”

Business News Wales