South West Accommodation Providers Feel the Pinch

Bude, and the South West generally, relies heavily on tourism, The SW Tourism Alliance creates a monthly report of statistical and qualitative feedback from local businesses. The figures don't make great reading. 36% of businesses reported visitor levels down in October (but 35% noted an increase). Turnover had decreased in 38% of cases and profitability had decreased in 45% of cases. Looking to November, 46% expected it to be worse than 2010. On a 1-10 optimism score, the average was 4.5%

Businesses have commented on the negative impact of increased fuel costs, in terms of travel but also fuel and heating of accommodation, and the negative impact that reduced bookings has on the ability to make improvements to properties, so a catch .22 situation. Good weather in October, however, extended the season slightly, and many accommodation providers cut rates to keep occupancy levels high. People seem reluctant to spend too much when in the area and harsh economic times are making bookings more variable.