County tourism board Welcome to Yorkshire has been placed into administration.
The organisation was hit by a huge expenses scandal in 2019, with Covid-19 hitting hard immediately after.
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Peter Cox CBE, chairman, said: “It was with deep regret that last night the board of Welcome to Yorkshire took the decision to place the organisation into administration.
“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.
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“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.”
Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP have been appointed as joint administrators.
Chief executive James Mason had left the organisation last year, having succeeded Sir Gary Verity who was embroiled in an expenses scandal and resigned in early 2019, repaying a significant sum. It prompted an investigation into how Welcome to Yorkshire was run, with a focus on outcomes rather than operations noted.
Mr Mason had spoken of the opportunity offered by an increase in staycations, with ambassadors appointed to support the telling of Yorkshire's story. Latest initiatives included 'Walkshire' and Yorkshire Menu.
Mr Cox said: “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.
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“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.”
Immediate responsibility for place promotion is likely to fall back to individual local authorities who part-funded WtY.
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