The East Riding of Yorkshire's head of Economic Development says the pandemic had had a “devastating impact” on the East Riding tourism industry but that there are some positive signs.
Uncertainty remains over how many of the 17,800 East Riding workers currently furloughed will return to their previous jobs as unemployment doubled compared to pre-coronavirus levels, councillors have heard.
East Riding Council’s Environment and Regeneration Overview and Scrutiny Committee heard the number of people claiming unemployment benefits stood at 8,460 at the end of April.
Council Planning and Economic Regeneration Director Alan Menzies told the committee the figure included 1,625 people aged between 18 and 24, up from 915 in March 2020.
It comes as council officers said an expected rise in staycations could help accelerate the East Riding’s economic recovery, with tourism and hospitality hit particularly hard by the pandemic.
Council Head of Economic Development Paul Bell told councillors the pandemic had had a “devastating impact” on the East Riding tourism industry which is estimated to employ about 13,000 people.
The sector is estimated to be worth around £619m in the East Riding.
However a report submitted to the committee highlighted some glimmers of hope for a recovery stating bookings made at Bridlington's South Cliff Holiday Park were worth £935,000, indicating a “bumper year” and extended season if trends continue.
Councillors heard £23.5m in government coronavirus restart grants had so far been paid out to 3,130 businesses, with £413,000 paid to 160 small and medium sized firms (SMEs) in support.
The council has also been granted £301,000 in EU funding to support market towns, with funding rolled out to Goole, Howden, Withernsea and others.
They also heard the Humber Freeport decision earlier this year which designated 380 hectares, 190 in Goole and 190 east of Hull, as tax relief zones would be economically key.
Mr Menzies said the aim was to get hospitality back up and running during summer before the expected withdrawal of government coronavirus economic support around the end of September.
But he added there was a “real challenge” in ensuring those on furlough get back to work.
The director said:
“The Freeport is a very positive step forward, 380 hectares have been allocated as tax sites.
“But unemployment is a significant challenge we will need to address.
“The amount of furloughed staff is also a real challenge, especially over how many of those individuals will return to their previous employment.
“The hospitality, food, drink and retail sectors are quite high in their furlough numbers.
“What’s important for me is how the hospitality will get back into business over the summer.
“The feedback from the tourism industry is very good, overnight accommodation is strongly booked and weather permitting hopefully the day trading will be really good this year.”
Ian Rayner, council head of culture and customer services, told councillors the East Riding had supported businesses with training and safety measures such as screens for bars, pubs and hotels.
He added those safety measures could become a permanent feature as officials expect them to remain in place for the foreseeable future.
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