JUST AN OPINION

Sunny days ahead

The recent G7 Global Summit clearly divided opinions as to whether it was right or wrong for Cornwall, however it certainly showed the county off in all its glory to an international audience. Toby Pool argues the future is bright for the sector despite the enormous challenges still facing hospitality and tourism businesses in Devon and Cornwall today.

About Toby Pool

Toby Pool is a partner in the commercial property team at employee-owned law firm Stephens Scown and heads up the Leisure and Tourism Sector Team.

www.stephens-scown.co.uk The G7 event held in Carbis Bay, while it may not have been popular for many local residents of Carbis Bay and St Ives, certainly shone a hugely positive spotlight on the amazing hospitality industry and scenery on offer to the staycation market. The images being beamed around the world of the peninsula should only help to promote international inbound tourism once restrictions are eased further and we can welcome foreign tourism to the region again.

The rise and rise of the Staycation

With lockdown restrictions gradually reducing and set to be lifted after July 19 and international travel still extremely difficult, Devon and Cornwall appear to be full or almost full this summer. This will bring a welcome boost to hospitality businesses that have had to remain closed for large chunks of the pandemic. With many now resigned to the fact that a foreign holiday is either not going to be possible or prove to be a lot of extra hassle this year, Devon and Cornwall continue to remain the number one choice for holidaying Brits. Whilst there Devon and are understandably currently challenges surrounding staff Cornwall continue shortages in some areas due to a combination of current to remain the variants and the post-Brexit number one choice effect, hopefully the continued roll out of double vaccinations for holidaying Brits to the younger population will improve the situation over the course of the summer.

Ongoing relief measures

Pausing the complete lifting of restrictions for a further four weeks until July 19 will not have come as welcome news for many in the sector, however a number of relief measures have been a lifeline for businesses in the sector and are set to continue for a while longer. Together with the Government-backed loan schemes and furlough scheme, the sector has also benefited from the reduced VAT rate of 5%, which has now been extended to 31 September 2021. The hospitality sector VAT rate is then due to increase to 12.5% until 31 March 2022, after which it will return to the standard rate of 20%.

In addition, having provided eligible retail, hospitality and leisure properties in England with 100% business rates relief until 30 June 2021, this is set to be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.

Post-Covid boom

Those hospitality businesses that have been able to continue to expand and invest in their businesses over the last 18 months and are looking ahead to a post-Covid boom will continue to be busy and remain attractive propositions both to buyers of those businesses seeking to relocate for lifestyle reasons or operators within the region looking to add bolt-on businesses to existing groups. There are likely to be opportunities for some business owners in the sector to acquire other businesses in the autumn from owners seeking to exit the sector.

Is the Staycation set to stay?

We continue to be extremely busy in the Leisure and Tourism Sector team within Stephens Scown, advising on a range of acquisition, disposal and refinance activity within the hotel, holiday park and wider leisure sector. With more and more of us not only having to, but now choosing to spend more holiday time in this country, but particularly in Devon and Cornwall, we firmly see the staycation boom is set to continue.