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May 2020

Last Updated: 27/05/2020

Harrogate

Harrogate hotel group leader warns of 'carnage' ahead

by Vicky Carr

| 28 May, 2020

Peter Banks does not expect other hotels in the Harrogate district to follow the St George and close down, but is not underestimating the challenges ahead for the hospitality industry.

The closure of the St George Hotel is symptomatic of the huge challenges facing the hospitality industry, according to the leader of the group representing the largest hotels in the Harrogate district.

Peter Banks, chairman of Harrogate Hospitality and Tourism Association, told The Stray Ferret: "They will be the first of many in the country. It's going to be carnage. The high street will be changed for good."

With Harrogate Convention Centre still set up as a Nightingale hospital and remaining on stand-by for an indefinite period, Mr Banks, who is general manager at Rudding Park, said there is a large question mark hanging over the viability of the industry in the district.

"What about all the bedrooms that go hand-in-hand with the convention centre? If it's a hospital for a year, all of those big shows won't be going on and all their attendees and delegates will not be staying in the hotel bedrooms.

"Only about three per cent of the bedrooms I sell are related to the convention centre, but there are other hotels that are much more like 30, 40, 50 per cent. Where's that business going to come from?"

Sitting opposite the convention centre, the St George was likely to have been more affected than most by it being out of use for events. But Mr Banks said being part of a business which also operated coach tours put it at greater risk than many of the district's other hotels.

While quarantine restrictions are in place for overseas travel, Harrogate is likely to get a boost from UK tourists. However, Mr Banks said HHTA's thoughts haven't yet turned to how the district can capitalise on this and market itself effectively:

"Right now, everybody is just trying to work out how the hell we're going to operate. We're that far away from creating any marketing plans. If you can't work out how people are going to go to the loo safely, it might be putting the cart before the horse."

Weight of responsibility

He criticised the guidance from the government as "about as clear as mud", saying they had left businesses to try to work out how to operate safely without straightforward rules. Hotel owners, he said, felt an enormous weight of responsibility to protect staff and visitors from the risk of catching Covid-19 and were constantly re-writing their plans as government guidance changed.

For example, he said reducing the number of staff in hotel kitchens means overhauling menus - and putting those menus onto apps instead of passing them between staff and customers. Even simple things like passing in corridors and using toilets will have to be considered and controlled. He added:

"My hotel manager said it's going to be like re-opening a new hotel. It's going to be like opening a new hotel on Mars. The rules are going to be entirely different and we're going to have to change things day by day while we work out how it works."

Mr Banks said he expects most of the hotels in Harrogate to be large enough to sustain themselves through the current turmoil. For restaurants, however, he said even if they are able to reopen in the coming weeks, social distancing may make it impossible for them to break even, let alone make a profit.

"The furlough scheme has been a life-saver, but frankly all it's doing is kicking the can down the road. We're all going to have to cope without the support of the government at some point. It's delaying the inevitable when a lot of smaller businesses will not be able to make a profit.

"If they have to get 70 per cent occupancy to break even in restaurants, what's the point? They just won't open.

The hospitality industry is extremely worried. Everyone is getting ready to open in July at some point but everyone is worried about what it's going to look like."

Short-term 'bounce'

As well as the hotel receptionists, cleaners, kitchen porters, accountants and others who lose their jobs when a hotel closes, Mr Banks said there is a ripple effect to others such as food suppliers. Even the move to cashless systems to reduce the risk of infection will result in job losses, as cashing up is no longer needed and couriers won't be required to take money to the bank.

The result could be further redundancies being made across all industries, leaving people with less cash in their pockets. While Mr Banks said he expects a short-term "bounce" for many hotels and restaurants soon after reopening, he said the winter could be very quiet as people run out of money they have saved during lockdown, or more job losses hit across the UK.

However, he sounded a note of optimism for the Harrogate district.

"Harrogate is an awful lot more fortunate than a lot of other places. We have a great natural resource, a really beautiful built environment, unlike so many other places. We will be less affected than others."