Harrogate Hospitality and Tourism Association Ltd has accused the Stray Ferret of publishing “misleading press reports” in an article about a £3,720 payment for the purchase of the domain name Destination Harrogate.

Yesterday The Stray Ferret published an article about Harrogate Borough Council spending taxpayers’ money to buy the domain name from Destination Harrogate as part of our remit to scrutinise the use of public money.

The association said in a subsequent statement that Harrogate hoteliers Simon Cotton and David Ritson, who are directors of Destination Harrogate Ltd, did not own the domain name and “it was not theirs to sell” because the decision was taken jointly by members.

Mr Cotton is managing director of the HRH Group, which owns the Fat Badger, the Yorkshire Hotel and the White Hart hotel. Mr Ritson is general manager of the Old Swan hotel.

It adds:

“In 2019, HBC approached HHTA and investigated the opportunity to purchase the rites to the brand name and website. All members met and took a formal vote on the matter and agreed to sell the rites to HBC for a nominal sum. At no point did either Mr Ritson nor Mr Cotton have any greater involvement in this matter more than any other association member. It was agreed that Destination Harrogate as a company would be wound up and a newly formed company under the name ‘Harrogate Hospitality and Tourism Association Ltd’ was registered. All assets were transferred to the new company”

The statement continues:

“In setting up the new company HHTA, Mr Cotton stood down as a director and therefore has no direct involvement in this company other than being a member of the association.

“HHTA would like to clarify that they were happy to work with HBC to transfer the domain name and that the transaction was between the HHTA and HBC only, and not anyone personally.”

The Stray Ferret has sought clarification on the statement.

Public records from the council show payment for the domain was made to Destination Harrogate Ltd, not HHTA Ltd.

Companies House records show Destination Harrogate Ltd is still an active company. A notice for voluntary strike-off was issued on January 4 this year. Mr Cotton and Mr Ritson have been listed as sole directors since late November 2019.

Companies House records for HHTA Ltd show the company has been dormant since 2020 with no activity.

In the light of this we asked for evidence of the assets, including the payment for the domain name, being transferred from Destination Harrogate Ltd to HHTA Ltd, as we have been unable to find any record.

We also sought clarification on how the domain name was not Mr Cotton or Mr Ritson’s to sell as they are listed as company directors, and requested further details about the links between Destination Harrogate Ltd, HHTA and HHTA Ltd.

The association, which lists the Crown Hotel in Harrogate as its address, replied to say it “will be making no further comment or response”.

The Stray Ferret contacted Mr Cotton prior to publishing yesterday’s article asking him if he wished to comment on the payment. We have not received a response.

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This column is written for The Stray Ferret by Peter Banks, the Managing Director of Rudding Park Hotel and Spa and Chairman of Harrogate Hospitality and Tourism Association

“I opened my eyes and realised it was all a dream….”

How many of us wrote a story that finished like that when we were at primary school? I know I did and I still remember with toe curling embarrassment how proud I was…..

When I look back on the last three months it does feel “otherworldly”, the first half of March when we weren’t affected at all, but we could feel the menace creeping  towards us, China, Italy, France, London, then us. Even the weather behaved itself, a beautiful spring. It almost felt like the Golden Summer of 1914 – the last hurrah before the world we knew was changed forever.

Sadly, this isn’t a dream, it is, to quote that dreadful new cliché, the new normal. This is now reality and we need to understand and manage it as well as possible.

Every day brings new challenges. If I can review a few of the most recent it will give you a feeling of a worms eye view from the sharp end of hospitality:

1.Track and Trace. The government has failed to create a system which tracks peoples movement. Therefore they have abdicated this responsibility to hospitality operators. We have to record everyone who comes into a pub or restaurant, contact details and time of arrival. I have had to introduce a “no track and trace, no beer” rule at our pub on the Holiday Park. Guests are very disgruntled at this invasion of their liberty, argue with us, abuse us and two guests even walked out as they “felt their rights were being threatened”. Please, it’s not our fault, we’re not being nosy, we are merely following the governments instructions and trying to help limit the spread of covid.

2. VAT reduction to 5% on accommodation and food in restaurants, cafes and pubs. On the surface a fantastic boost to the Hospitality industry as we will no longer be paying 20% tax on these items, just 5%. Why did Rishi take this sector specific action. The Government guidance states:

These changes are being brought in as an urgent response to the coronavirus (COVID-19) pandemic to support businesses severely affected by forced closures and social distancing measures.

I believe that he wanted to throw a lifeline to the Hospitality industry, however – how many of you, dear readers, are going to expect to have the discount passed on to you? From a straw poll I have taken – the vast majority of my guests will want a discount. Therefore this 15% VAT reduction does not help the Hospitality industry at all, we will have the same level of demand (just because it’s cheaper doesn’t mean that nervous people will go to the Pub), and we will merely pass 5% of a lower price onto the government. We will make exactly the same profit (or loss more likely!). So, a plea from me – if your local chippy has not dropped their price by £1.00, or your Hotel has not decreased your room rate by 15%, please don’t give the owner or manager a hard time.

Rishi deliberately made it sector specific to help that sector, not to put money in everyone’s pockets. If he’d wanted to do that he could merely have cut income tax or national insurance. I cannot state clearly enough, there will be many hospitality businesses that will not survive this winter, (today I heard that the iconic Yorke Arms is closing as a destination Restaurant). Please help them to keep as many staff employed as possible. Every time you ask for a discount you will be increasing the number of redundancies in that business.

You will still be paying the same price as before, It actually makes no difference to you. The government is just trying to ensure that the pub will still be open in April by allowing us to keep some more VAT.

3. £1000 for every furloughed worker still in employment on January 31 2021. This is a wonderful gift for many Hospitality operators who will need every scrap of financial help they can get next winter. However, what Rishi is asking us to do is continue employing a member of staff for the next six months rather than making redundancies and receive £1000 for taking that risk.

For a seriously damaged industry like hospitality that equation doesn’t stack up. Right now every operator that I know is making “clear, reasoned decisions to save as many jobs as possible”. That is a euphemism for having to make redundancies otherwise the business will not survive. Some sectors have increased profitability in this crisis, supermarkets, logistics, some manufacturing, yet they will also receive this boon. A sector specific extension to the Furlough scheme would have been better, the money could then have gone towards helping Hospitality through to next Spring when the good times will return (I hope!).

These examples are not dreams, they look fantastical, but they are reality. Six months ago 5% VAT on accommodation was laughable.  These keep me and my fellow Hospitality leaders awake at night, trying to unscramble meanings and the future from our very cloudy crystal balls. We reopen Rudding Park Hotel (Accommodation and Restaurant only) on Monday 13^th July and I pray that I have made the right decisions and chosen the correct path.

The great news is that we are open, we have taken advantage of all of the government schemes, I have a fantastic team who have supported me through every challenge and we will be up, fighting and winning next spring when the good times come back.

We have to accept that the rules and mores that we used to work to have changed absolutely, and only those businesses that change will survive. It doesn’t matter how big and powerful you are, If you do not change you will become extinct.

The past three months has undoubtedly been the biggest leadership challenge of my  35 year career. The world has been fundamentally changed, and in my darker moments I wonder if I will ever be the same leader as I was before. That innocence of early March feels like it happened to a different person.

To quote LP Hartley in “The Go-Between” – “The past is a foreign country; they do things differently there…”

We all look forward to welcoming you back to Rudding Park, and do what we enjoy, caring and looking after our guests. See you soon!

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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.

Peter Banks, chairman of Harorgate Hospitality and Tourism Association

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.”

Peter Banks says re-opening Rudding Park will be ‘like opening a new hotel on Mars’

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.”