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Economic Development

Most tour operators will make 'large-scale' redundancies without Government action, º£½ÇÊÓÆµinbound survey reveals

Shocking figures reveal that 88% of companies to make between 25% and 100% of their staff redundant

View of an empty Colwyn Bay beach during the late spring bank holiday(Image: Ian Cooper)

The vast majority of tour operators bringing visitors into the º£½ÇÊÓÆµ are to make "large scale" redundancies if the Government does not take urgent action to intervene, a new survey has revealed.

Tourism trade association º£½ÇÊÓÆµinbound says it believes 88% of operators and destination management companies - responsible for bringing in over 50% of all international visitors - are to make between 25% and 100% of their staff redundant due to the impact of the coronavirus on business.

The shocking results came from º£½ÇÊÓÆµinbound's survey of members, and said 60% will make further redundancies in August when the Coronavirus Job Retention Scheme tapers off. Over half of businesses do not expect to last longer than the next six months.

The body is now calling on the Government "to do much more" to protect the sector's jobs and businesses.

Joss Croft, chief executive of º£½ÇÊÓÆµinbound, said: “The Chancellor’s latest economic recovery plans clearly recognise the value of hospitality and tourism to the º£½ÇÊÓÆµ economy which is very positive, however the measures that have been announced will unfortunately not help the many businesses that are involved in inbound tourism.

“Our survey results unsurprisingly reinforce that those tourism businesses that rely wholly on international visitors for their livelihoods are on their knees and that the risk of widespread redundancies and the collapse of previously successful businesses is a very real threat without further Government support."

She said there is a "low awareness" among international travellers of where to go in the º£½ÇÊÓÆµ outside of London, meaning it is tour operators who generate a "large proportion" of visitation to the nations and regions.

Chancellor of the Exchequer Rishi Sunak delivers a summer economic update in a statement to the House of Commons, London(Image: PA Wire/PA Images)

She added: "Sadly, we look set to see significant redundancies from tour operators and the tourism supply chain next month, which means that many communities and businesses throughout the º£½ÇÊÓÆµ who depend on significant revenue from international visitors will also suffer.