Easter 2020 Covid 19 Lockdown Impact Survey – Analysis of Data – APRIL 2020

Easter 2020 Covid 19 Lockdown Impact Survey – Analysis of Data – APRIL 2020

Scope & Purpose

Following news of the the “Easter Lockdown”, Bude Area Tourist Board circulated a survey to its member businesses and to a wider audience via Tourism Associations to assess the impact on SME businesses in the tourism sector.

Businesses included self-caterers, B&Bs, hotels, holiday parks, activities, restaurants and some attractions (<10% of the whole). 917 surveys were completed, with a collective annual turnover of £249,614,558 making the average per business TO £272, 208. The data was skewed by 28 businesses with a turn over of >£1M which accounted for £133M turn over (TO).

With these excluded the average TO per business analysed is £130,668.

Of all businesses survey, 71% were at least 90% dependant on Tourism for their entire income; loss of income incurred over the Easter lockdown, accounted for around 10.5% of their annual income.

% Dependency on
tourism
Completed
Surveys

Turnover
£ Million
(total)

>50

>80

>90

Easter
Loss
£ Million
ALL UK

918

£249,614

802

656

654

  26,168

SOUTH WEST 421 £144,709 352 300 251

  16,163

Business Impact

Businesses were asked to assess the impact of the loss of revenue on their businesses, based on the initial lockdown period of 3 weeks. 

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Across all businesses surveyed, 89% said it would at least have a severe if not disastrous impact.

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In the SW region, 85% said it would at least have a severe if not disastrous impact. 

Across all areas, only 2% said the impact would be slight.

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Impact of extended lockdown

Businesses were asked what the impact of extending the lockdown beyond the initial Easter period would be. 93% of businesses said the affect would be at least severe, if not disastrous.

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Guest bookings – refunds/ deferrals

Businesses were asked how they were dealing with customer cancellations and the need to refund or defer bookings.  Only 19% of businesses surveyed were able to refund more than 10% of guest bookings; over 40% of businesses have deferred at least 65% of their guest bookings (and therefore the liability) into the following year:

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The chart (above) shows the number of businesses that have refunded >10% of their bookings and the number of businesses that were unable to refund (cashflow) and have therefore deferred >65% of their bookings and liability into 20/21.

Business Interruption Insurance

In order to manage business risks, most businesses had Business Interruption Insurance with almost 90% having insurance they believed would protect their income.

The feedback from the survey shows a different picture; around half (53%) businesses with insurance had put in a claim at the time they responded to the survey, and 85% had already been refused.  Not a single business responded to say the insurance was paying out.

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Conclusion

Tourist businesses are highly likely to fail as a result of an extended lockdown; they were also asked how long they could survive without any income. 

  • 54% said they could not last beyond 3 months on zero income
  • 73% said the could not last beyond 6 months.

April 23rd  2020

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