How Yorkshire hotels and tourism can prosper in 2022 – Simon Cotton

It has been well documented that many hotels and hospitality businesses have gone under from the pressure. So, what about 2022?

I don’t have a crystal ball but what I do have is 30-plus years in hospitality, including two years of navigating a business through the Covid pandemic.

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Hospitality, with or without a pandemic, is traditionally quieter at this time of the year so I’m hoping restrictions won’t need to be imposed as the numbers in our venues are naturally lower.

What does differ this time around in the pandemic is that the Government are no longer supporting the industry with any staff wage support, meaning staff costs will continue to be the highest outgoing cost at a time when income is at its lowest.

I always like to look at the opportunity of any challenge that comes my way, so with low demand and staff costs remaining the same, it is the ideal time to take stock of your product.

Identify new opportunities to gain business and use surplus staff to make changes for the better from decoration improvements to getting ready for the peak times ahead.

Don’t wait to see what the Government plans are, we can’t predict what will happen. Plan now so you’re ready is our mantra. And, when the demand comes, which it will, you’ll be ahead of the competition.

One thing that hospitality has had the benefit from is the reduced VAT, which has been a blessing. No business enjoys VAT, but with the Government set to put the cost back up to 20 per cent VAT for hospitality at a time when the industry is still feeling the pandemic, the outgoing cost is going to sting that much more.

Of all the measures the Government have supported the industry with, I would actively encourage Boris Johnson and Co to rethink putting VAT back up whilst hospitality is still being hit.

Extending the VAT discount back down to five per cent would allow each individual hospitality business to have a little breathing space from outgoing expenditure. By doing so we may save a number of small independent hoteliers from going under and keep local Yorkshire people in jobs.

One positive about the pandemic is the country’s re-evaluation of our beautiful county. From April onwards, I strongly believe staycations will be back and British people will be back exploring God’s own county in their droves.

Whilst staycations are a welcome side effect of the pandemic, the downside is staffing. From staff who have been on furlough and found new careers to a shallower pool of good hospitality staff to choose from creating wage bidding 
wars, the forthcoming staycation boom this summer will see 
hotels once again struggle to 
staff for the demand. It is a challenge, but one that is created from demand, so let’s see this as an opportunity.

In addition to the Government changes to the pandemic, there will be major changes to the councils in North Yorkshire next year. Combining the area into just two authorities – York and North Yorkshire – will be a solid challenge as they start the transition. Will councillors choose to leave a lasting legacy or will they wind down and hang up their boots? I hope for the future of North Yorkshire that it is the former.

The same can be said for Welcome to Yorkshire. As the largest county, we desperately need a destination marketing organisation that can champion this beautiful destination.

Whether this is Welcome to Yorkshire in its current guise is yet to be seen, but I do hope that the tourism agency does indeed turn a corner and comes out fighting for us this year, returning to its former glory as a force to reckon with in what is set to be a summer of opportunity. Despite their internal issues, there are some great people still in the team.

I’d like to see the softening of rules on pavement licences and the like that many businesses have benefited from, adopted for the long term by our councils. I believe across Yorkshire we have seen creative and responsible use of outdoor space and this should be encouraged. Alfresco hospitality demand is only going to grow so let’s embrace it.

Whatever 2022 throws at us, one thing can be for certain; change. We must learn to live with Covid in our lives, but instead of letting it dictate us, we must learn to dominate it and plan for the future.

Simon Cotton is managing director of the HRH Group which operates eight venues across Harrogate and York, including the Fat Badger brand.

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