Policymakers could help SMEs make the most of tourism season

With summer just around the corner, policymakers and government are being urged to help SMEs in the hospitality sector make the most of tourism season.

Latest data from the Federation of Small Businesses (FSB) has shown a big rebound in confidence for those with businesses in accommodation and food services – up 53.7 points to -17.8 points.

This negative zone highlights the challenges faced by the sector following Covid-19 – 77% of small tourism and hospitality firms say that they carry some sort of debt, compared to just 59% before the pandemic.

The FSB says that this means that the government and other policymakers must consider urgent ways to alleviate the burden on the country’s tourism industry.

FSB National Chair Martin McTague, explained, “This summer presents a kaleidoscope of opportunities for small firms in the hospitality and tourism sectors across the UK. There’s a wealth of things to do here – from historical 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’s predictions of a warm summer come true, giving a fillip to small firms that rely on tourists.”

Martin added, “Small firms have already endured the profound impact of the pandemic and overcome numerous obstacles, and now they must navigate high inflation. The improvement in hospitality confidence indicates the first green shoots of recovery, but they need continuous care and support.

“Stimulating our tourism and hospitality sectors with our Sunshine List this summer could make the world of difference, allowing hospitality firms to be the best they can possibly be. In turn, this will mean tourists can properly support our small business ecosystem, helping confidence leap into positive territory.”

The FSB has made suggestions to help in the form of a ‘Sunshine List’ which includes:

• Increasing the Small Business Rates Relief threshold to £25,000 to remove 200,000 small firms from the rates system.
• Raising the VAT threshold from £85,000 to £100,000 to help spark growth.
• Cheaper energy costs.
• Making parking accessible on high streets and increasing park and ride options for tourist hotspots.
• Local Visitor Economy Partnerships should come up with plans that are fully reflective of small business interests.

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