No new investigations into Welcome to Yorkshire, liquidators’ report revealsWelcome to Yorkshire owed £3m to creditors, say liquidators

Failed tourism body Welcome to Yorkshire owed £3m to creditors, according to the latest liquidator report.

The organisation was placed into administration in March 2022 after officials blamed the impact of covid and the “task of securing sufficient funding”.

A report by Armstrong Watson, which was appointed liquidator in August last year, showed that it owed £3 million to unsecured creditors.

A previous administrator’s report from April 2022 had initially estimated Welcome to Yorkshire would owe £1.8 million to 67 creditors.

Among them is North Yorkshire Council, which is due £1.3 million in relation to the North Yorkshire Pension Fund.

The Stray Ferret has approached the council to ask whether it is still pursuing the money and if it expects a repayment from liquidators. However, we had not received a response by the time of publication.

Armstrong Watson said in its report that it was unable to confirm what payment would be made to creditors at this stage.

It said:

“I am currently in the process of reviewing and agreeing unsecured creditors’ claims as there will be sufficient funds to pay a dividend.

“Unfortunately, at this stage I cannot confirm the level of the dividend payable as this is contingent upon agreeing both secondary preferential and unsecured creditor claims.”

Meanwhile, staff claims totalling £9,570 have been repaid in full.

A sum of £296,000 owed to HMRC is also expected to be paid in full, but liquidators are continuing discussions with the body.

Keith Tordoff, who is running for independent mayor of York and North Yorkshire, said the loss of the brand was “a massive failure”.

He said:

“The loss of the Welcome to Yorkshire brand and of course the invested monies is a massive failure by some members of the North Yorkshire Council who were either on the board of Welcome to Yorkshire or those authorising the unsecured loans.

“The taxpayers deserve better and those councillors on North Yorkshire who were involved should consider their position.”

The move comes after administrators sold the tourism body’s assets and website last year.

Yorkshire Dales business, Silicon Dales, purchased Yorkshire.com, its social media accounts and the rights to the Tour de Yorkshire.

North Yorkshire Council had initially bid for the assets, but was outbid by the private firm.

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North Yorkshire tourism bosses warned not to repeat past mistakes

Officials developing a destination management plan to replace Welcome to Yorkshire have been urged to learn the lessons from the past.

A meeting of North Yorkshire Council’s transition scrutiny committee yesterday heard councillors call for the local authority to protect the Yorkshire brand, take more heed of the views of small businesses and work to attract international events without losing oversight of the consequences of tourism on communities.

Councillors were told the local authority was weeks away from submitting a destination management plan  to Visit England to join neighbouring areas such as East Riding, Durham and Cumbria in becoming a local visitor economy partnership, to gain more national funding and support.

Officers told the meeting at County Hall in Northallerton they had consulted extensively with the sector on the framework which would lead, influence and coordinate all of “the aspects of our destination which contribute to a visitor’s experience”.

They said the plan would take account of the needs of visitors, residents, businesses, and the environment, joining all organisations with an interest in the industry responsible for 10 per cent of the county’s economy.

It is planned to bring Yorkshire LVEPs together in a destination development partnership, which would then identify collective strategic priorities.

In addition, the council is also part of a group looking at marketing North Yorkshire at a national and international level, the meeting was told.

Councillors heard while the council’s ambition is to increase the £2bn visitor spend by about 5% a year and increase the proportion overnight visitors to 20% of all visits, there were concerns the latter aim could exacerbate housing and staff accommodation issues in some areas.

An officer told members the council was confident the plan’s priorities reflected what the industry was wanting.

He added: 

“We have a really ambitious set of targets to grow it year on year and to retain more overall visitors.

“We get a lot of day visitors but there is a real shift to try and get overnight stays and the retention time being longer.

“We want that plan to be private sector-led, but also with a clear steer from where the local authority is taking the lead. We are not under-estimating our leadership role in this, but we also want the sector to own and help us deliver these ambitions.”

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However, Helmsley division councillor George Jabbour highlighted how comments by the Federation of Small Businesses, which represents 4,000 businesses in the county and York, on the council’s plan had been “very far from glowing”.

FSB comments included: 

“Businesses are frustrated after being excited about the new start that this is where we have landed – they don’t see the purpose of the DMP or what need it answers due to the confused plan and lack of vision.”

Cllr Jabbour added: 

“North Yorkshire County Council had too close a relationship with Welcome to Yorkshire. There were a few scandals involved there. It is a concern from the start we don’t get as close and that the new council makes the same mistakes as before.

“The reality is we have got to make sure we have something quite ambitious and hopefully we will have enough time to change and improve the final plan.”

Officers said they would meet the FSB to address concerns, but some businesses appeared to have confused the management plan for a strategy.

The committee’s acting chairman, Cllr Bryn Griffiths, told officers: 

“Don’t lose the Yorkshire brand. The Yorkshire brand is so strong. Don’t degenerate it.”

Welcome to Yorkshire successor set for spring launch

A new council-backed tourism body for North Yorkshire is expected to launch by spring next year, despite continuing uncertainty about what its functions will be.

A meeting of local authority leaders in North Yorkshire and York heard council officers’ discussions with regional tourism firms were set to conclude this month, the outcomes of which would shape what type of organisation could be developed and its funding structure.

The meeting was told the development of a proposal for a replacement organisation to Welcome to Yorkshire remained at a very early stage, four months after it was placed in administration following years of financial and reputational issues.

However, council chiefs for York and Harrogate highlighted their areas already had well-established tourism marketing and management services and were looking for a strategic regional body to support.

Harrogate Borough Council chief executive Wallace Sampson told the meeting it was important that organisations such as its tourism body, Destination Harrogate, did not lose their identity. He said:

“What we’d be keen to see is some integration with a region-wide body. We feel there are some strong benefits to marketing the Yorkshire region as a whole because it has a strong brand. ”

After the meeting, North Yorkshire County Council leader Councillor Carl Les said:

“What we’re looking at as leaders is more about destination management, not just destination marketing.

“It was always thought to have the proper conversations with people in the industry and the councils that it would take until the autumn before an option could be put before the leaders.”

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While some council leaders say the collapse of Welcome to Yorkshire has seen the loss of potential significant interventions in the tourism economy this year,  some councils have used their own staff to take on tasks previously undertaken by the tourism body.

The meeting heard it remained far from clear what type of publicly-backed tourism organisation was wanted across York and North Yorkshire, let alone Yorkshire as a whole, with different areas seeking a body with different functions.

Complications in deciding the way forward, the meeting heard, included agreeing potential deals with Wensleydale entrepreneur Robin Scott’s Silicone Dales, who bought Welcome to Yorkshire’s assets, including the rights to the Tour de Yorkshire, in April.

North Yorkshire County Council chief executive Richard Flinton said following further discussions between the council and the tourism sector a decision on the new organisation’s structure was scheduled to made before Christmas in the hope that the new tourism body could be launched by April next year.

He described the timescale as being “tight and ambitious”.

The region’s official tourism agency was placed into administration at the start of March after council leaders pulled the plug on public funding after years of reputational and financial problems.

Mr Flinton said while Welcome to Yorkshire’s assets had not been bought by a local government body, there was still “a lot of appetite” amongst councils for a body established to protect tourism, promote the brand of Yorkshire and pick up some of Welcome to Yorkshire’s work.

Business Breakfast: Plans for new Yorkshire tourism body

Businesses in Yorkshire’s tourism industry are being invited to an online event to ask them what they want from a new tourism organisation.

In March the troubled tourism body Welcome to Yorkshire went into administration as council leaders withdrew funding for it.

The Yorkshire Leaders Board, which is made up of local authority leaders, says there now needs to be a new approach to marketing the county. It plans to set up a new organisation to replace WTY and will meet in May to agree a timeline for its creation.

In a statement on the new website Yorkshire Tourism it said:

“We would like to ensure that Yorkshire’s tourism and hospitality businesses, and local destination managers are involved in the development of this organisation. We believe in the power of collaboration and open communication, and look forward to creating a more positive future for the Yorkshire tourism industry.”

If you want to be part of the free Zoom discussion contact Yorkshire Tourism here. 

Property firm, Artium Group, launches in Harrogate

A new Harrogate firm specialising in property development, investment, construction, and asset management is to launch.

Artium Group is headed by property developer Thomas Shotton and chartered surveyor Sam Colley, owner of Ousebank Consultancy.

The firm will have three subsidiaries; Artium Investments, Artium Construction and Artium Asset Management.

The pair have already secured projects totalling almost £30m in gross development value including two high-end residential conversion schemes, a leisure conversion with a rooftop in Harrogate and a residential new build scheme in York.

Mr Colley said:

“We are thrilled to announce the establishment of Artium Group.

“Operating initially in Yorkshire and the Humber, we are positive about the prospect of owning and operating a portfolio, focussing on occupiers and their requirements which drive quality throughout and give our investors added confidence.”

11 Welcome to Yorkshire staff made redundant

Nearly half of the total number of staff at Welcome to Yorkshire have been made redundant after the organisation was placed into administration.

Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP were appointed joint administrators of the troubled tourism body earlier this month.

The move followed “increasingly challenging” financial circumstances for Welcome to Yorkshire, which faced “a task of securing sufficient funding”, according to chairman Sir Peter Box CBE.

In a statement, the administrators said that 11 staff had now been made redundant with 12 retained.

The statement added:

“Welcome to Yorkshire had a number of ongoing projects at the time it was placed into administration.

“The joint administrators are currently engaging with the various stakeholders to determine whether these projects can continue in the short-term whilst they seek to establish whether a buyer can be sought for the business and assets.

“Whilst this process is ongoing, the business is operating using a reduced workforce. Regrettably 11 employees were made redundant on Tuesday with the remaining 12 members of staff currently being retained.

“The joint administrators are aware that Welcome to Yorkshire has a large membership base and the subscription position will be reviewed in the coming days. The joint administrators have been advised that all advance subscriptions were held separately by Welcome to Yorkshire. All relevant parties will be contacted in due course.

“Unfortunately a number of events that were due to take place in the coming weeks will now be cancelled – affected parties will be contacted as soon as possible.”

Controversy and cash flow problems

Administration followed a troubled few years for Welcome to Yorkshire.

In September, James Mason resigned as chief executive and the body had to approach local councils to help bail it out financially during the covid pandemic in 2020.

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Harrogate Borough Council and North Yorkshire County Council gave Welcome to Yorkshire £31,000 and £290,000 respectively to plug its £1.4 million funding gap.

The body also had to take out a £500,000 loan in September 2019 from North Yorkshire County Council to keep it afloat.

In March 2019 there was controversy when former boss, Sir Gary Verity, resigned on health grounds. He later faced allegations of bullying and inappropriately claiming expenses, which he denied.

Two inquiries carried out after Sir Gary’s resignation cost the tourism body £482,500.

Bid to set up new taxpayer-funded Yorkshire tourism body branded ‘laughable’

Taxpayers in North Yorkshire are set to fund a new tourism organisation in the wake of Welcome to Yorkshire’s demise.

Welcome to Yorkshire entered administration on Tuesday after years of financial and reputational difficulties.

Yorkshire Leaders Board, which represents council leaders and metro mayors, agreed at a private meeting this week there should be a new regional destination marketing organisation funded by local authority grants. A timeline will be agreed in May.

The prospect of local authorities, including North Yorkshire County Council and Harrogate Borough Council, funding another tourism body has prompted concrns.

Stuart Parsons, leader of the Independent group on the Conservative-controlled county council, said:

“North Yorkshire County Council and the district / borough councils have spent vast amounts supporting this organisation with little or no return.

“The idea of setting up another group at this moment is just laughable.”

Welcome to Yorkshire in happier times.

‘Couldn’t organise a tea party’

Cllr Parsons was also critical of the decision by Yorkshire Leaders Board to publish a summary of a tourism report by Merran McRae, a former chief executive of Wakefield and Calderdale councils, rather than the full report. He added:

“We haven’t seen the report and so don’t know just how rotten things were. Also given that the leaders of North Yorkshire County Council and Harrogate Borough Council served on the existing board I’m afraid that I would have no confidence in their ability to organise a tea party let alone a regional agency.

“All previous board members must be prevented from serving on any new organisation as they have failed taxpayers.”

Stuart Parsons

Stuart Parsons

Carl Les, leader of North Yorkshire County Council, was a Welcome to Yorkshire board member for five years until administration. Richard Cooper, leader of Harrogate Borough Council, was a board member from 2016 to 2019.

A Conservative county councillor, who asked not to be named, branded Cllr Les’ five years on the board as a “litany of failure”, adding:

“It fits with other issues showing a lack of judgement — the loss-making Brierley Group companies and the £9m acquisition of the Royal Baths in Harrogate.

“Some of the core services North Yorkshire County Council runs are excellent but when it comes to commercial judgement, it’s a series of disasters.”

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£85,000 a year from county council

The county council paid annual subscriptions of £85,000 to Welcome to Yorkshire.

Cllr Carl Les, leader of North Yorkshire County Council, who has ruled himself out of being a future Mayor of North Yorkshire.

Carl Les

Cllr Les said the new tourism body would be smaller than Welcome to Yorkshire and focus on strategic marketing to “get people interested in coming to Yorkshire” and leave specific initiatives to other groups.

He said his anonymous critic “doesn’t actually know an awful lot about what has happened” and added “it was a pity they didn’t challenge me face-to-face”.

Cllr Les added he was unable to discuss Welcome to Yorkshire in detail as it was now being managed by administrators.

£62,100 since 2012 from Harrogate Borough Council

Harrogate Borough Council has paid £62,100 from its holiday tourism marketing budget to Welcome to Yorkshire over the last decade — but hopes to get £12,100 reimbursed.

A spokesman added:

“We recognise the need for an organisation that has a Yorkshire-wide focus to help develop the Yorkshire brand in order to attract visitors to the region.

“This enables us to build on the successes of Destination Harrogate, and the reputation we have as an events destination, to drive both leisure and business visitors to the Harrogate district.”

Welcome to Yorkshire chairman Peter Box said in a statement:

“The past three years have been incredibly difficult for board members and staff as we have endeavoured to deal with well-publicised legacy issues.

“These matters, coupled with the impact of covid and the task of securing sufficient funding from the public and private sectors to place Welcome to Yorkshire on a sound financial footing, have made the situation increasingly challenging.”

“It is my sincere hope that the public sector will recognise the value of a new regional destination management organisation to build on the many achievements of WtY.

Council leader Richard Cooper has not responded to a request for comment by the Stray Ferret.

Richard Cooper

Richard Cooper

Armstrong Watson LLP has been appointed as joint administrators of Welcome to Yorkshire.

County Councillor Gareth Dadd, North Yorkshire’s deputy leader for finance and assets, said in a statement:

“This is disappointing news, but we now have an opportunity to work with all our partners across Yorkshire to build a new destination marketing company with a new funding model that will help the whole of Yorkshire punch its weight and build on its globally recognised brand.

“North Yorkshire has seen its fair share of benefits from the work of Welcome to Yorkshire in past years in attracting visitors to the county for world class events such as Tour de Yorkshire and our role in the Grand Depart of the Tour de France. And it’s important to say that all loans made to the Welcome to Yorkshire by the county council have been repaid in full with agreed interest.”

It remains to be seen whether the new organisation, which could be run by many of those involved with Welcome to Yorkshire, will avoid the same mistakes.

 

Welcome to Yorkshire enters administration

Troubled tourism organisation Welcome to Yorkshire has been placed into administration.

In a statement this afternoon, Sir Peter Box CBE, chair of the organisation, said it was with “deep regret” that the board had taken the decision.

He said the impact of covid and the “task of securing sufficient funding” had made the situation at the tourism body “increasingly challenging”.

Sir Peter Box said in his statement:

“The past three years have been incredibly difficult for Board members and staff as we have endeavoured to deal with well-publicised legacy issues.

“These matters, coupled with the impact of covid and the task of securing sufficient funding from the public and private sectors to place WtY on a sound financial footing, have made the situation increasingly challenging.

“The de Bois review of Destination Management Organisations could have created the opportunity for WtY to be given the structure and long-term funding required to move on, grow and develop into the organisation we believe it should be on behalf of Yorkshire and its people.

“Sadly, the decision of the Yorkshire leaders not to commit to a multi-year funding package, whilst understandable, removed that pathway and means that WtY cannot continue in its present form.

“Most importantly, I want to pay tribute to the team of talented and dedicated professional staff who have continued to do remarkable work in the toughest of circumstances to promote Yorkshire’s many attractions to the world.  I offer my heartfelt thanks and wish them well in their future careers.

“I must also place on record my gratitude to those board members who have remained with WtY, working selflessly in a collective effort to save the organisation from closure.

“It is my sincere hope that the public sector will recognise the value of a new regional Destination Management Organisation to build on the many achievements of WtY.

“This can offer our tourism industry the chance to move forward with a focused approach, deliver on regional priorities, and secure the best outcomes for everyone who visits, lives, works and studies in Yorkshire.”

Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP have been appointed as joint administrators of Welcome to Yorkshire.

Controversy and cashflow problems

The decision follows a troubled few years for Welcome to Yorkshire.

In September, James Mason resigned as the organisation’s chief executive and the body had to approach local councils to help bail it out financially during the covid pandemic in 2020.

Both Harrogate Borough Council and North Yorkshire County Council gave Welcome to Yorkshire £31,000 and £290,000 respectively to plug its £1.4 million funding gap.

The body also had to take out a £500,000 loan in September 2019 from North Yorkshire County Council to keep it afloat.

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It also faced allegations from Sir Thomas Ingilby, owner of Ripley Castle and Gardens, that the body had become “completely unaccountable”. Its former chief executive defended the allegations in an interview with the Stray Ferret.

The tourism body’s worries stem back as far as March 2019 when it was hit by controversy after former boss, Sir Gary Verity, resigned on health grounds. He later faced allegations of bullying and inappropriately claiming expenses, which he denied.

Two inquiries carried out after Sir Gary’s resignation cost the tourism body £482,500.

Paul Scriven, a former leader of Sheffield City Council and a Liberal Democrat peer, told the House of Lords Welcome to Yorkshire had a “culture of toxicity” and misused public funds.

MPs told 2014 Tour De France has not boosted Yorkshire tourism

Over 300,000 people lined the streets of the Harrogate district for the 2014 Tour De France Grand Depart, but MPs have been told the event has provided no lasting benefits to the region.

The Grand Depart saw riders given a royal send-off by the Duke and Duchess of Cambridge and Prince Harry at Harewood House.

Almost 200 cyclists took part, racing through Masham, Ripon and Killinghall before a sprint finish in Harrogate. It memorably saw Mark Cavendish crash off his bike on Parliament Street.

Since the event, other major cycling events have been held in the Harrogate district, including the 2019 UCI Cycling Championships, which has divided the town ever since.

At an MPs select committee on Tuesday, Caroline Cooper Charles, chief executive of Screen Yorkshire, which champions the film and TV industry in Yorkshire, gave evidence about promoting the UK as a tourist destination.

Asked by Labour MP Clive Efford if the Grand Depart had a lasting impact on tourism in the county, she replied:

“In all honesty, I don’t think it did.

“It certainly put the spotlight on Yorkshire and people came to see the race. Probably for a short amount of time hotels were booked up and restaurants were full. In terms of long term impact no, I wouldn’t say so.”

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In 2014, Gary Verity, then chief executive of Welcome to Yorkshire, the tourism body that played a major role in bringing the event to Yorkshire, said the event “will have a lasting impact on visitor numbers and businesses for years and years to come”.

But Ms Cooper Charles said Yorkshire as a county had failed to capitalise on the success of the event.

A Harrogate Borough Council report published in 2015 claimed £19m was spent in the district thanks to the race. A Welcome to Yorkshire report claimed £100m was spent across the county.

Ms Cooper Charles said:

“Once the bikes are gone, what’s left? It’s the roads.

“In terms of a campaign to sell the rest of Yorkshire around the Tour de Yorkshire leg, i don’t think that happened. If it happened there would have been a longer-term impact.”

The Stray Ferret asked Welcome to Yorkshire to respond but we did not receive a response by the time of publication.

Harrogate council to continue to fund Welcome to Yorkshire

Harrogate Borough Council is set to continue paying its subscription to the troubled tourism body Welcome to Yorkshire, despite an increase in the cost.

Borough council officials confirmed to the Stray Ferret that the authority will honour its payment this year, which will be more than £14,000.

Councils across North Yorkshire are to consider whether to help keep Welcome to Yorkshire afloat after the tourism body upped its subscription fee for local authorities by some 45 per cent.

The proposal has been met with criticism from leading district councillors with some responding to the increase by calling for the stream of public money that has been handed to WtY to be permanently plugged or for a decision to be postponed.

However, a spokesperson for Harrogate Borough Council said it would continue to honour its subscription until there was any change in the regional approach to the tourism body.

They said:

“We recognise the need for an organisation that has a Yorkshire wide focus to help develop the Yorkshire brand in order to attract visitors to the region. 

“This enables us to build on the successes of Visit Harrogate, and the reputation we have as an events destination, to drive both leisure and business visitors to the Harrogate district. 

“Unless and until there is any change to the regional approach to tourism we confirm that subscriptions will continue to be paid in accordance with our existing agreement.”

The tourism body has admitted making “big mistakes” in the way it spent taxpayers’ money, including spending more than £430,000 removing and investigating its former chief executive, Sir Gary Verity, following concerns over his expenses claims.

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In recent years numerous local authorities have threatened to withhold funding from WtY, at a time that its finances have been hit hard by the pandemic.

An officers’ report to a meeting of Richmondshire District Council’s corporate board on Tuesday next week states the subscription fee for local authorities was initially “modest” at £1,300 a year until 2012, when the rate was raised to £10,000.

The cost of the subscription for next year has risen to £14,515, which WtY has justified on the basis that there had been no increase in the six previous years.

Criticism from leading councillors

Stuart Parsons, leader of the Independents group on North Yorkshire County Council, said WtY’s page views for Richmondshire were far inferior to the privately-run Richmond Online tourism website, which was receiving one million hits a month.

He said:

“What have we been getting out of Welcome to Yorkshire? Nothing but scandal. Originally it was supposed to be immediately self-funding, but it has always relied on massive public contributions.

“Councils should not be giving any more money to an organisation that has not demonstrated it is making an effective difference to our lives and our economy.”

Lord Scriven, the former leader of Sheffield City Council, has said WtY needs to adopt a self-funded model.

However, Cllr Gareth Dadd, executive councillor for finance at North Yorkshire County Council, said the authority would examine any request for funding from WtY “in the light of its performance and our ability to pay”.