Sunday 20th September 2020

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In this second video (8 mins and 2 secs) Sandy provides an update on his views on the overall sector, possible Government developments and his thoughts on what may be coming over the next few months.

• Sandy is a Director of the National Park Destination Group and there was a Zoom meeting a few days before, on Thursday 17th September. Talking with other directors of businesses in the hospitality sector and the general feeling is that it is “very challenging”.

• More challenging for the coaching hotels (ie hotels which have their main business from coach tours staying over, over several hundred guests a night) and there is “no light at the end of the tunnel for them yet, and they are having to reinvent themselves and look at other ways of promoting their business”

• “For our own business in Balmaha, we have been very fortunate, the weather has been very kind to us”

• “But we are very conscious that we are going into another winter and we are going to really need to be active on social media telling the world, or telling the British Isles, that we are open for business and you can come here safely and enjoy the countryside”.

• “Without doubt, talking with my business colleagues in hospitality, everyone is seriously worried how they are going to get through this coming winter financially”.

• “There is going to need to be some form of Government support” eg VAT to 5% being continued, Rates relief being continued.

• “Without support I see many casualties in the hospitality sector.”

• “I see a long road to recovery”

• It will be challenging times if there are further restrictions brought in to control the second wave of Covid.

• Tried to be proactive by bringing in renewed contracts for staff.

• “But reality is that if the business is forced to close again, the contracts may protect the business if staff have to be laid off, but staff will have to be look for other jobs and when we come back to normality we won’t have any staff”

• Normally look to invest in infrastructure over the winter, the repairs and renewal but very hesitant to spend any money whatsoever (most of it we haven’t got!) on the basis that we don’t know what’s ahead of us”

• As with most hospitality businesses they would normally go into the winter having had a good summer and having built up funds to cover the quieter winter months. But there are four concerns: (i) they are going into winter with significantly less funds (reduced revenue) from being locked down for 16 weeks, (ii) with increased debt and borrowing due to Covid-loans; (iii) the potential of a further restrictions and lockdown impacting on income and costs and (iv) not sure going to get continuing support from the banks since “normally at this time of year would start negotiating support from the bank for the winter with some business funds accumulated from the summer trading, but without that I feel very vulnerable”.

• On the positive side, with good weather busy days and the steps the business has taken proactively along with the “incredible and up-beat staff”.

• “No matter how good the business is, without the good staff we are nowhere”.

• “We are still waiting to hear from the conclusion of a ruling on our business continuity insurance pay-out for an infectious diseases clause in our insurance policy. But we are cautiously optimistic.”