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Dec 2021

Last Updated: 18/12/2021

Business

Harrogate hotel suffers £100,000 cancellations due to Omicron

by Calvin Robinson

| 17 Dec, 2021

Peter Banks, managing director of Rudding Park, says the government’s lack of clarity has thrown the hospitality industry 'under the bus' and calls on Chancellor Rishi Sunak to offer more support to the sector.

Peter Banks, managing director of Rudding Park Hotel and Spa.

A Harrogate hospitality business has claimed the government has thrown the industry “under the bus” since the Omicron variant hit the country.

Peter Banks, managing director of Rudding Park Hotel and Spa, said his business had seen £100,000 worth of cancellations due to covid recently.

He blamed mixed messaging from government and called on Chancellor Rishi Sunak to offer more support to hospitality businesses.

Mr Banks told the Stray Ferret:

“The government’s lack of clarity has thrown the hospitality industry under the bus.

“They need to make a decision. They either come out with a clear message, go out or do not go out.

“I’m lucky that I have a wide enough base of business to draw upon, but there will be businesses that will struggle.”

Mr Banks added that most of his cancellations were corporate clients worried about the possibility of spreading covid among their employees.

He echoed calls from other hospitality firms across the country, which have urged Mr Sunak to offer more support, such as an extension to the VAT cut and business rates relief, to help the industry.

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Mr Banks said hospitality firms, especially those in city and town centres, “could do with some assistance”.

Sara Ferguson, chair of Harrogate Business Improvement District and owner of two local restaurants, said cancellation of Christmas parties was having a financial impact on Harrogate's key hospitality sector.

She said:

“As soon the Prime Minister announced wearing masks in shops and on public transport was mandatory, hospitality industry trade began dropping away. And this was made worse with the work from home message.

“Christmas parties being cancelled at short notice is proving a financial nightmare, particularly as venues will have already ordered in the food and drink, and there’s no one taking these places.

“December is usually boom time for the hospitality trade, and many businesses rely on the takings from this month to see them through the quieter months of January and February.

“Sadly, for many this won't be the case this year, and I fear that a number of businesses will be forced to close their doors come the new year."

Ms Ferguson, who owns Sasso and Caffe Marconi, agreed that the industry needed support from Mr Sunak. She said:

“While there is no official lockdown yet, the message from politicians has resulted in the public shutting themselves away, and as a result there definitely needs to be some sort of financial support offered to the hospitality industry.”

David Simister, chief executive of Harrogate District Chamber of Commerce, said:

“Walking through town this lunchtime there were plenty of empty tables in pubs, bard and restaurants.

“Within hours of the Prime Minister announcing we all had to wear facemasks in shops and on buses and trains, businesses started cancelling their staff Christmas parties at hotels. And that is continuing at a pace.

“However, it’s not just the venues themselves who have lost vital revenue from food and drink sales, it’s the suppliers and staff who are out of pocket too.

“And come January, when ‘bounce back’ loans start to be repaid, I think we could see a lot of businesses in real trouble.

“The health of the economy is in a critical condition, and there needs to be some form of emergency financial aid for these businesses who are suffering through to no fault of their own.”

Chancellor urged to support hospitality

Yesterday, the chancellor cut short a trip to California after holding talks with hospitality firms via video link.

Mr Sunak has been under growing pressure to come up with support for hospitality as record covid numbers hammer takings.

Previous support offered to businesses, such as furlough, has already ended, while a 12.5% VAT cut is set to finish in March.

UK Hospitality, which represents firms across the country, has also called for business rates in the first quarter of 2022 to be deferred.

The government has not placed any restrictions on hospitality firms amid rising covid cases. However, Prime Minister Boris Johnson urged people on Wednesday to “think carefully” before socialising.

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Harrogate hotel suffers £100,000 cancellations due to Omicron

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