NEARLY 20,000 jobs are at risk as Cumbria’s multi-billion pound tourism economy begins to fear the Coronavirus pandemic could leave it crippled.

Cumbria Tourism has revealed that by the end of May the fall-out from the virus, which has led to almost-total booking cancellations and attractions shutting down, will cost the county’s tourism industry £1.45bn in revenue.

The organisation predicts the medium-term effects the Covid-19 crisis will have on the tourism and hospitality sectors in the Lakes could be ‘catastrophic’.

“Just coming out of winter, this crisis has come at the worst possible time when businesses were gearing-up to make money during the traditionally busier spring and summer seasons," said its president Eric Robson. "That money is what would see them survive the quieter autumn and winter months.

“Even if some businesses can survive in the short term, grants and loans are just covering essential costs, they are not replacing profits. Some businesses will survive for long enough to re-open – but will they manage to get through the following nine or ten months into the 2021 visitor season?”

New research published by the Royal Society of Arts and Manufacturing has also pointed to higher job losses in the tourism-driven economies of Britain’s beauty spots, like the Lake District, in comparison with other parts of the country.

A survey carried out by Cumbria Tourism found that 91% of hospitality business across the county have recorded cancellations for May, June and July and into August.

According to the last full year of data held by the body, Cumbria’s visitor economy contributed £3bn to the county annually, while supporting 65,000 jobs - equivalent to 26% of its overall working age population.

Nigel Wilkinson, managing director at Windermere Cruises, said: “Businesses will have to be innovative and find new ways to operate under the current restrictions to try and get through to more profitable months.

“People and businesses in Cumbria are a hardy bunch. But, owing to the scale of the current challenges they face, a series of government packages will also be required to help them get there.”

Cllr David Southward MBE, cabinet member for economic development and property from Cumbria County Council, said: “It is vital that we work together to safeguard this industry so that it can provide growth and jobs for the county’s economy during the recovery. Never has there been a time when it has been more evident just how much the visitor economy underpins the wider economy."

The government has announced a new loan scheme for businesses which Chancellor Rishi Sunak described as 'a simple, quick, easy solution for those in need of smaller loans’.

The new initiative allows businesses to apply for ‘Bounce Back Loans’ of up to £50,000 or 25% of turnover, with the government paying interest on the loans for the first 12 months.

However, according to Westmorland and Lonsdale MP Tim Farron, a number of businesses in the Lakes have been unable to avail of other forms of government support for small enterprises offered over recent weeks.

Mr Farron has written to the Chancellor urging him to support the hospitality sector in Cumbria in the long-term.

“Making provisions for businesses who do not pay business rates to be included in the support scheme, as well as everyone else that is missing out, gives us the best possible chance of being able to stay at home and save lives.”