11 May 2020

How coronavirus has impacted Dorset's tourism sector

How coronavirus has impacted Dorsets tourism sector

Tourism plays a major role in Dorset’s economy, valued at around £1bn per year and supporting almost 40,000 jobs.

Results from two important surveys highlight that recovery from COVID-19 requires not just financial support, but a need for advice and guidance on how to operate safely. These surveys have recently been issued to businesses in Dorset by Dorset Council’s Visit Dorset team and Dorset Local Enterprise Partnership (LEP).

Dorset Council’s survey of local tourism and hospitality sector businesses on how COVID-19 is impacting them received over 1,000 responses. The Council has submitted this information to the Department for Digital, Culture, Media & Sport (DCMS).

Dorset LEP’s business impact survey had received over 300 responses as of 7 May, with over half of responses from the tourism and hospitality sector.

Since early March Dorset LEP's growth hub, Dorset Gateway, has been signposting local businesses to relevant support and financial aid from a range of sources, including Dorset Council and BCP Council, central government, and various partner agencies, and we remain committed to continuing this work while also looking to the future and considering recovery strategies.

Insights from Dorset LEP say further guidance needed

Finn Morgan, Business Engagement Manager at Dorset LEP said: “Tourism, hospitality and retail businesses across the county are experiencing a major impact on business operations, with a vast majority now experiencing cash flow issues.

“Many are accessing government financial support and a small number able to operate by making changes to access requirements, or diversifying their products, but what we’re hearing now is a need for longer term guidance and information to aid business recovery.”

Dorset Local LEP board member, and Dorset Tourism Association Chair, Richard Smith, shared: “It’s clear from the evidence being collected across the county that Dorset’s tourism businesses need to find way to reopen as soon as possible. If tourism is to remain restricted, the sector will need additional support to protect jobs, especially over the winter. 

“We are drawing up guidance about how we can do so as safely as possible. A key focus will be to create an environment where businesses unsure about their future, start to feel increased confidence, and we would value input from the Government, as soon as possible, about what the national standards for safe working will be.”

Committed to continued investment, lobbying and support

Cllr Gary Suttle, Dorset Council’s Portfolio Holder for Economic Growth and Skills, Dorset LEP board member, said:“We are reviewing the ever-evolving direction from central Government and are working on how the ease of lockdown will effect Dorset’s business community. We are working closely with partner agencies and groups to ensure our support has a consistent message.

“We are also working hard on how we best support local business through what will be a challenging recovery period and understanding the longer-term impact on Dorset’s economy. The council is committed to evolving our strategy, frequently engaging with local businesses and ensuring that local communities and businesses are at the heart of our decision making.

“The recently announced new discretionary scheme will benefit many more businesses which have so far not been eligible for any of the existing packages of support.”

Help us build a picture of the economic situation in Dorset

Dorset LEP’s COVID-19 Business Impact Survey remains open for businesses, charities and the self-employed to share the impact on their operations.

A further Visit Dorset survey will be sent out later this week and the council is encouraging businesses to respond and provide feedback again. This will help us build a picture of the evolving economic situation in Dorset.

Further information

  • Of the tourism, and hospitality and retail sector responses to the Business Impact Survey from Dorset LEP, the majority were sole traders or micro businesses, with 70% experiencing forced closures. Most had applied for small business grants, Small Business Rate Relief/Rural Rate Relief, with 40% believing they can operate for a further three months in the current restrictions and only 21% for 3-6 months.
  • Of the 1,044 respondents to the Visit Dorset survey, the majority were sole traders or small to medium sized businesses. 80% said they had temporarily closed as a result of Covid-19.
  • Key takeaways and full results of the Visit Dorset survey can be found on the Visit Dorset website.
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