Tourism boss upbeat despite cuts

Welcome to Yorkshire said that as many as 25,000 posts could be created, but alternative income was needed to fill the void left by the abolition of Yorkshire Forward.

This year, the regional development agency is providing about 9m to Welcome to Yorkshire, and chief executive Gary Verity said that the region's public and private sector organisations must now make up the shortfall.

Speaking at the company's AGM in Leeds yesterday, he said the tourism industry has grown 22 per cent since they were formed in 2008, is now worth 7bn to the region's economy and supports 250,000 jobs.

Mr Verity said: "Now is the time for Yorkshire to decided whether we are going to keep brand Yorkshire.

"We are looking for new income streams, it is not just tourism businesses which have benefited from the huge increase in the profile of Yorkshire. We have created 4,000 jobs over the last 18 months."

The AGM heard that trips to Yorkshire increased by 10 per cent in 2009 to 216 million, visits to seaside resorts went up by 27 per cent in the same period and that for ever pound invested last year, 40 was delivered to the region's economy.

However the auditors annual report raised concerns about the lack of confirmed funding to replace the considerable shortfall created by the closure of Yorkshire Forward.

The report also revealed the company is facing a pension liability of 2.7m – which has rocketed from 1.9m.

The report states: "Welcome to Yorkshire derives the majority of its income from a number of funding arrangements with Yorkshire Forward.

"Yorkshire Forward will not be in a position to fund the company for the financial year starting April 1, 2012.

"Although the directors are seeking to obtain funding from alternative sources to allow the core activities of the company to continue, there are no guarantees in this respect, and hence there is considerable uncertainty as to the outcome of current and any future negotiations with potential funders."

The report also states that the pension deficit is being addressed by increased contributions.

However it states: "The uncertainty regarding the future funding position of the company also creates an uncertainty in respect of the ability to meet its current anticipated and any future ongoing liabilities to the pension fund."

Mr Verity said he was confident that the organisations that have benefited from the region's tourism boom, will now step up with investment.

"We need four or five income streams to replace the level of funding we currently receive from Yorkshire Forward," the chief executive explained..

"This includes our private sector members – we currently have 3,000 and we need to double that figure.

"We can also generate income through more sponsorship, through local authorities, though central pots of funding such as the regional growth fund and through merchandising."

Finance director Simon Charters admitted at the AGM that the current position with regards to the pension fund was "not good news" but said that action had been taken to address the liability – such as closing the final salary scheme to new members.

He said that the shortfall was created by issues beyond the company's control, and they had 27 years to make up the gap,