London's hotels should put together packages aimed at domestic leisure guests in partnership with local attractions to thrive in the near term, according to a United Kingdom government minister.
The United Kingdom capital depends on international travel and the parts of the city where tourists go—the West End, the City, the River Thames-side stretches on the north and south banks—have little in the way of resident populations, with most workers commuting by public transportation into the city and then dining, drinking and being entertained there before jumping on the train to go home again.
With two lockdowns now having ended but workers still encouraged to work from home, central London has not been able to take advantage of domestic business.
The U.K. government is putting emphasis on getting the capital and the U.K.’s other cities back on their feet, which requires a very successful vaccination rollout across the country.
Oliver Dowden, the U.K. government’s secretary of state for digital, culture, media and sport, a department that includes hospitality and tourism, and also Member of Parliament for the constituency of Hertsmere, which borders London, said his priority is to begin reopening hotels and other hospitality by May 17, with a full return to normal life on June 21.
Speaking during a webinar organized by general manager membership association Master Innholders, Dowden said, “confidence is slowly being rebuilt based on our road map, but we need to stick to this road map, so that the investments we are putting place will not be wasted."
“All is looking good now for 17 May,” he said, although he warned that could change if the numbers of new COVID-19 cases grow.
“If we can remove every remaining restriction, we will remove every remaining restriction on 21 June,” he added.
Kate Nicholls, CEO of the U.K.’s hotels and hospitality membership organization, UKHospitality, said June 21 is crucial to the industry as “the first day we can break even.”
David Morgan-Hewitt, managing director of luxury hotel The Goring, said one benefit from the last year has been just how important hospitality has become to the populace.
“I received an amazing message from the Prince of Wales [Charles Windsor) saying that the industry is not just jobs, but the health and soul of the nation,” he said.
Dowden said the next step is to continue the government’s Events Research Programme to understand the relevant risks involved in hosting large events, which, he added, will provide a clearer picture as to what else can open up and thus help hotels.
He added the findings of that program will be made public at the end of May, with its initial testing being conducted on blue-ribbon events such as the World Snooker Championships in Sheffield, the soccer Carabao Cup on April 25 and music awards The Brits on May 11.
Dowden said the week before the webinar he has been out for his first meal for some time and also to his local pub for a pint.
“We are understanding the behavior of [having attendees to events], testing the scheme, seeing the dropouts, how many people are willing to take part, how much notice they need of changes and the science of ventilation and crowd movements. This will sit alongside reviews of coronavirus and social distancing,” Dowden said.
Passports and Traffic Lights
It will be a while before the U.K. welcomes back international travelers in large numbers, Dowden said.
He said while new cases of coronavirus were now very low in the U.K., on April 22, "there was a record number of new cases globally.”
On the day of the webinar, the U.K. saw 18 deaths from COVID-19.
He said a “traffic-light” scheme of countries would be devised based on coronavirus risk, a process led by Michael Gove, fellow MP and the government’s Chancellor of the Duchy of Lancaster, who was also looking into certification processes for vaccinated Brits wishing to travel.
Dowden said there are some myths floating around about the schemes.
“We are not doing this because we want COVID certification. We’d love no restrictions at all. However, it is worth considering the role of certification, certainly as we have to do it internationally, as other countries are doing so," he said.
He added that it's important to take a thoughtful approach to avoid having to close things back down and hamper a recovery.
“And to make sure that reopening is permanent,” he said.
He said further news on that and which countries are in the green, amber and red categories would be announced before May 17.
Leveling Up
Another key government policy is to spread more evenly investment, benefits and jobs around the country, something it terms “leveling up.”
Help would be aimed at younger generations, Dowden said.
He said he was acutely aware of both the huge price paid by young people to help protect the health of their older relatives and the role hospitality has in improving wealth and opportunities, especially in areas of less social advantage.
“The more hotels that are open, the more jobs we can generate, and we are working to see how we can encourage people into city centers, especially if people choose to staycation. It is the buzz and vibrancy that draws people into cities,” he said.
Dowden said more than 25 billion pounds sterling ($34.7 billion) had been spent in taxpayer money in the form of grants, loans, furlough schemes and reductions in business rates and value-added tax or sales tax.
“We have spent a lot on this, the taxpayer has, so it would be crazy not to support ongoing moves,” he said.
Nicholls added the reduction in VAT has been critical, saving many jobs and businesses and encouraging domestic spend.
Another key area is working with the Department of Education, Dowden said, to make sure staff have those IT skills. He added that means in the hotel business that back-of-house staff are able to help front-desk staff and guests.
Labor from abroad has long been a staple of U.K. hotels and has been made more difficult by Brexit. Dowden said that responsibility lies with MP Kwasi Kwarteng, secretary of state, Department of Business, Energy and Industrial Strategy, while matters of tourism belong to MP Nigel Huddleston, under-secretary in Dowden’s department and the former head of travel at Google.
“We’re keen the sector can hire the brightest and best, and to have [Brits] share ideas and cultural exchanges,” Dowden said. “The sector has responded utterly fantastically. I am so impressed by the determination and resilience to keep businesses going among what is no doubt the most difficult time, where you have to go back centuries for a comparison."