Policymakers have a golden opportunity to help small businesses make the most of the tourism season this summer as the holiday season begins, according to the Federation of Small Businesses (FSB).
The UK’s unparalleled attractions, along with favorable exchange rates, are likely to attract a wave of international visitors over the next few months – while budget-conscious Brits look to stretch their cash with domestic stays.
Recent data from the recent Small Business Index (SBI) shows that there was a significant rebound in confidence in lodging and food services, up 53.7 points to -17.8 points.
The fact that it remains in negative territory highlights the challenges the sector has faced in the aftermath of Covid-19 – with 77% of small tourism and hospitality businesses saying they carry some type of debt, compared to 59% before the pandemic.
This means that the government and other policy makers must urgently consider ways to reduce the burden on our tourism industry.
To help, the FSB has created the Sunshine List to help raise tour operators this summer:
- transmit It needs to run smoothly – and the government must ensure that its drilling fund is allocated fairly.
- parking It should be accessible on the main streets, with the growing number of hotspots for tourists Line up and ride.
- to lift Value added tax A minimum of £85,000 to £100,000 could spur growth in the hospitality industry, with many tour operators currently stopping trading near the end of the tax year to avoid hitting the current limit and incurring additional costs.
- the Small business rate exemption The threshold should be increased to £25,000 to remove 200,000 small businesses from the pricing system.
- Cheaper energy Costs – Energy companies should embrace the FSB’s proposal to allow smaller companies that negotiated their contracts at the height of the energy crisis last year to be able to “mix and stretch” their contracts to take advantage of lower wholesale prices.
- Economic partnerships for local visitors You must come up with plans that fully reflect the interests of the small business.
Martin McTague, FSB National Head, said: “This summer presents a variety of opportunities for small businesses in the hospitality and tourism sectors across the UK. There are so many things to do here – from historic sites to traditional fish and chips by the sea – so it’s no wonder people flock here every summer.
“Long-term weather forecasts are notoriously unreliable, but we hope the Met Office forecasts a warm summer to come true, giving a boost to small businesses that depend on tourists.
Small businesses have already experienced the deep impact of the pandemic and have overcome many obstacles, and now they have to overcome high inflation. The improvement in Hospitality Confident indicates the first green signs of recovery, but they require ongoing care and support.
“Stimulating our tourism and hospitality sectors with our sunshine list this summer can make a world of difference, allowing hospitality businesses to be the best they can be. In turn, this will mean that tourists can properly support our small business ecosystem,” Which helps confidence jump into positive territory.”