Devon's fate
In the hamlet of Iddesleigh, deep in rural Devon, publican Jamie Stuart is open for business as usual at the Duke of York. He is refusing to cave in to foot-and-mouth disease despite the fact that his pub is surrounded by infection: just one of Iddesleigh's half-dozen farms still has animals alive. Locals - mostly farmers - who have been the main source of income since Stuart took over the pub five years ago, aren't going out, and takings have been decimated. So far, official help has been in the form of a two-month rate rebate worth £300.
"We had the best winter ever, because we were the Times-Pimm's Pub of the Year 2000," he says. "Then foot-and-mouth hit, and business died. Today [a Tuesday] we did seven lunches; normally we'd do 50 or 60. Takings are 60% down. Weekly turnover is down £6,000-£7,000. Local people are supportive, but I've lost shoot dinners, farmers' meetings, business travellers and weekenders." Part-time staff have been laid off; the pub's eight letting rooms were only busy at the weekend because of a funeral; and Easter trade depends on a regular party of Germans not cancelling.
To cap it all, Stuart is a farmer, too, and has the worry of his own 250 sheep and 60 head of cattle that he keeps at nearby Winkleigh.
Stuart's is just one of many cases that combine to paint a devastating picture in Devon. According to South West Tourism, foot-and-mouth has cost the region's hospitality industry £52m in lost revenue in March alone (see panel) and, if research from Exeter University is borne out, the whole outbreak could see 8,000 jobs in the industry go. Forward bookings, particularly for the key Easter and May bank holidays, are significantly lower, with Devon hoteliers the worst hit: three-quarters report bookings down at least 10% on last year.
Foreign visitors, particularly Americans, who traditionally flock to Devon's country house hotels, are the main absentees, either through cancelling trips or not booking. At Gidleigh Park in Chagford, where five AA rosettes and two Michelin stars usually attract plenty of custom, owner Paul Henderson says: "It's a disaster. We're losing £5,000-£6,000 a week and reservations are 25% lower than they were at 1 April last year. March occupancy was 25%." He expects to lose £150,000-£200,000 over the next six months. Sue Murray, who owns Lewtrenchard Manor in Lewdown, echoes Henderson's feelings: "The phone is very quiet. We're almost full for Easter but the rest of April isn't good. Bookings are 20-25% down on forecast."
The Horn of Plenty, the Michelin-starred restaurant with rooms in Gulworthy, is just a mile outside the compulsory cull area. Business has halved, says chef and co-owner Peter Gorton. Covers in the 45-seat restaurant have dropped from 25-30 to 12 and room trade is "non-existent". "Foot-and-mouth is all around me," says Gorton. "It's like a ghost town."
He's dreading having to lay off staff. "We employ 100 people [he also co-owns the Carved Angel and Carved Angel Café in Dartmouth], 35 of them at the Horn of Plenty. Some have been here 24 years. My priority is to keep them in work."
Gorton is luckier than many, however. Strong business in Dartmouth is subsidising the Horn of Plenty, and he's finding that local customers in Gulworthy eat at the restaurant when they can.
Up on Dartmoor the situation is far, far bleaker. Some hotels and pubs reliant on walkers have been forced to close indefinitely; some, such as the Forest Inn at Hexworthy, plan to reopen for Easter; a few are struggling to remain open throughout. At the Rugglestone pub in Widecombe in the Moor business has dropped by 70%: "Normally I do 80-100 lunches on Sunday," says licensee Lorrie Ensor. "Last Sunday I didn't do any. It's the first time in eight-and-a-half years that's happened." At the Dartmoor Inn in Merrivale Paul Grist's situation is catastrophic: "I've lost 90% of my business. Takings are £31,000 down. I've laid off all staff except one part-timer. I'm doing everything myself, seven days a week."
At a second Dartmoor Inn - this one in Lydford - business has halved. Licensee Karen Burgess has reduced staff hours. "We'll limp through Easter, but the summer will be hard. As long as we spend nothing we might pull through." Burgess and her husband review the situation daily and will close in the evening if there are no dinner bookings by 5pm.
The crisis hit as preparations were being made for the new fishing season and shoot organisers were planning their next season. Fishing is banned, and at the Arundell Arms at Lifton, which owns 20 miles of fishing on the River Tamar, manager Sally Hill now markets the hotel differently, promoting its three-AA-rosette restaurant and general leisure breaks rather than fishing holidays.
Looking ahead to the autumn, she's likely to be affected if shoots can't go ahead in the same number. "We've got a shooting party from the States booked in October. They rang to ask what the situation was, because they'd have to cancel the trip before the end of May so as not to incur charges." As movement of poultry is not restricted outside infected areas, shoots will go ahead, but, according to nearby estate manager Robert Alexander, the season will be different. "Smaller syndicates may cancel, but commercial shoot organisers will go ahead," he says. The news will be welcome at Lewtrenchard Manor, another hotel that attracts shooting parties.
Actively repositioning a hotel in the market, as Hill is doing at the Arundell Arms, is one way of mitigating the effects of foot-and-mouth. At Gidleigh Park Henderson is using the hotel's Web site, www.gidleigh.com, to keep in touch with customers and convey accurate information and has written to those with bookings in the next six months. While he believes this has helped slow the rate of cancellation, March 2001 still saw 70 cancellations from US visitors and just 58 bookings, compared with 11 cancellations and 133 bookings in March 2000. At the Horn of Plenty, Gorton advises leaning on banks for help and getting rates reduced. "Then shout that you're still open," he urges.
Malcolm Bell, chief executive of South West Tourism, says that despite the proactive approach of many, immediate cash-flow and good weather are essential. A crucial test will be the early May bank holiday: "If the weather is poor and business isn't good, we'll never know if it was because of foot-and-mouth or the weather. If the weather is fair and business still not good, that's when people may choose to close."
The crisis in Devon
South West Tourism's quarterly report, How's Business in the West Country, paints a bleak picture for January-March 2001. Questionnaires were sent out before the full impact of foot-and-mouth was realised, so the situation is probably worse than indicated.
Volume of business is down 21% on last year. Serviced accommodation is suffering most, with a 26% fall.
54% of Devon hospitality and tourism businesses report bookings down at least 10% for April-June. Serviced accommodation is worst affected, 74% of operators reporting forward bookings down at least 10%.
The region's hospitality and tourism industry lost an estimated £52m in March alone, losses made up as follows:
Accommodation: £32m
Restaurants, cafés, pubs: £8m
Travel, including fuel and parking: £6m
Retail: £4m
Attractions: £2m
Survival tips
The following advice from Malcolm Bell at South West Tourism could help:
Don't discount - add value with "three nights for the price of two"-type offers.
Control costs, but reduce staff hours rather than make redundancies - think to the future.
Talk to staff and suppliers - there is plenty of "Dunkirk spirit".
Market creatively - if you traditionally attract walkers, target the elderly or families.
Tell customers what they can do rather than what they can't.
