A STUDY has revealed a week-long trip to the Lake District could set visitors back £1,600 more than a trip to Italy as increased demand sees staycation hot spots across the UK hike up the prices.

Covid-19 has seen the county’s booming tourism industry lose an estimated £2billion in the last 18-months. Combined with an increase in demand from holiday makers unable and/ or unprepared to jet off overseas this has resulted in prices rocketing in some areas of the Lake District’s tourism industry.

The study by consumer group Which? found a seven-night stay in a hotel in Lake Garda, Italy, cost £802 in comparison to a comparable stay in the Lake District at £2,424.

Self-catered and private accommodation has seen the largest increase across the UK, with data from AirDNA revealing prices have risen by 41 per cent on average.

And it’s an area of the hospitality market that homeowners are eager to cash in on in Cumbria with South Lakeland seeing a 32 per cent increase in the number of holiday lets over the past year, according to Westmorland and Lonsdale MP Tim Farron who recently met with Airbnb to discuss the ‘concerning’ trend.

Meanwhile the study said that UK hotel prices dropped by 13 per cent on average between 2019 and 2021.

However, the analysis found that while increased demand due to Covid has seen prices soar, the UK was one of the most expensive European destinations even prior to the pandemic.

And managing director of Cumbria Tourism Gill Haigh said despite a reportedly busy summer domestically there was still much ground to make up in lost earnings.

Almost 50 per cent of businesses that took part in the destination management board’s business tracker said bookings were in fact down, she said.

She added reduced capacities and heightened costs such as extra cleaning and the additional cost of agency staff as the industry battles with staff shortages had resulted in a ‘considerable increase’ in costs for businesses.

This was echoed by Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, who said business’ costs have risen ‘tremendously’ and that ‘frustrating’ staffing shortages had exacerbated the issue-one which she said could remain for ‘quite some time’.

“Despite domestic visitor numbers often hitting the headlines over the summer, there is much business still to make up as a result of lockdown and restrictions for the first part of the year and ongoing capacity issues due to subdued staffing levels,” said Ms Haigh.

“The latest data from our business tracker survey shows that, for the year overall, 44 per cent of tourism businesses in Cumbria are reporting booking levels to be down, with a fifth significantly so.”

She advised visitors to book well in advance and directly with accommodation providers to ‘get the best prices’, adding that ‘online travel agents can charge up to 25 per cent extra.’

She added: “At the same time, customers will recognise that the last 18 months has brought a considerable increase in costs for businesses. Cleaning regimes and equipment, additional measures to maintain social distancing, the extra cost of agency workers and additional costs to recruit and maintain staff have affected businesses still struggling after months of lockdown.

“Many are unable to operate at full capacity, but overheads do not reduce, however all our visitors can look forward to a warm Cumbrian welcome.”

Ms Haigh also highlighted the biggest issue currently plaguing the industry-staff shortages.

“The major issue affecting the industry at the moment is recruitment 85 per cent of businesses surveyed mention it as a problem, 66 per cent as a significant one.”

Ms Caldwell added that domestic holidays had ‘historically’ been viewed as being more expensive and said prices ‘do appear to be particularly high this year’.

She said: “There are a number of reasons behind this and clearly supply and demand is a key part of that – as well as using that to try to compensate for earlier losses, not least given that prices rocketed before we really hit the costs hikes being experienced by businesses in the visitor economy and more widely.

“We have heard of some astronomical price increases for accommodation - not in Cumbria I have to say - by 100 per cent or more, while others have been holding prices much nearer to the usual.

“But it’s absolutely the case that costs have risen tremendously for businesses, including those in the visitor economy. Labour shortages have led to spiralling wage costs, while not resolving the situation.

A spokesperson for English Lakes Hotels Resorts & Venues, which owns several Lakes venues including Low Wood Bay and Waterhead, said: “Industry prices have been pushed upwards due in part to much higher demand and staycationing, but also due to rising costs across the sector.

“There’s no doubt the pandemic has caused substantial change and upheaval for the hospitality industry generally - as indeed it continues to do in other sectors too - and that in turn affects pricing.”

But there are concerns that a prolonged period of higher prices could price out potential visitors.

“The whole point of having national parks is that they are for the enjoyment of everyone, no matter your income,” said Westmorland and Lonsdale MP Tim Farron.

“What we desperately need to avoid is a situation where the only people who can afford to live in or visit the Lakes or the Dales are those with the deepest pockets.

“Many of our local hospitality businesses are continuing to offer fair prices and great experiences.

“Others have felt that they’ve had to increase prices due to problems brought about by the pandemic and Brexit.”