The government will announce a multi-million pound aid package for hotels and rural businesses hit by the food-and-mouth crisis today.
Businesses will be able to apply for special loans with extended repayment terms and breaks. The government will step up efforts to restore public confidence in the tourist industry and persuade people to visit the countryside over the Easter holiday. Tourism promotion bodies will get increased subsidies. The Foreign Office has asked film star Hugh Grant to reassure American tourists that Britain is open for business on an overseas visit.
The government revealed that the foot-and-mouth outbreak has cut tourism revenues by 10%-80%, depending on the area. Chris Smith, culture secretary, met industry leaders to discuss a recovery strategy in the run-up to the Easter break. The British Incoming Tour Operators Association said it would take until 2003 to recover. Overseas visitors had dropped 25%-30%. The British Tourist Authority expects revenues from foreign travellers to drop by up to 20% from £12.77bn last year. An audit handed to the government last night said the epidemic will cost the British tourist industry at least £5bn by September far higher than previously thought.
Financial Times 06/04/01 page 2
The Daily Telegraph 06/04/01 page 11
The Times 06/04/01 page 1, page 11
The Independent 06/04/01 page 1, page 6, page 8 (Parliament)
The Guardian 06/04/01 page 8
