Uncertain future for pubs in wake of US terrorist attacks

Pubs could face tough times ahead, as consumers tighten their belts and tourist numbers fall in the wake of the terrorist attacks on the USA.

Tourism minister Dr Kim Howells (pictured)​ has launched an action plan to support the leisure and tourism industry as it faces a fall of 20 per cent or more in tourist numbers.

After a meeting with the British Tourist Authority, Dr Howells said the attack on the US "will inevitably have a severe impact on inbound tourism to Britain". He is having a series of meetings with industry representatives to develop a strategy for recovery.

Richard Tobias, chief executive of the British Incoming Tour Operators Association, predicted that five million people will stay away from Britain this year. Even before the attacks, visitor numbers to the UK were down by nearly 16 per cent because of foot-and-mouth disease. Mr Tobias said any signs of a recovery had now been wiped out. "American tourists are our biggest market but the downturn is not just confined to the Americas.

All over the world there is a reluctance to travel, not just because of concern about safety but also uncertainty about the economic impact of the attacks."

That uncertainty also means fewer UK consumers are likely told be able to afford to visit their local, with the spectre of rising unemployment looming as the downturn in the economy bites. Sir Eddie George, governor of the Bank of England, has said that it is too soon to judge whether the British economy will avoid recession, but reported a 30 per cent fall in consumer spending in the immediate aftermath of the attack. Six Continents, operator of pub brands such as All Bar One, O'Neills and It's A Scream, is one of a growing number of companies to issue profit warnings.

Related stories:

Trade backs calls for ID scheme after US terrorist attacks (20 September 2001)

Pubs to delay opening as mark of respect for victims of US atrocities (13 September 2001)

People flock to pubs to watch attack on America unfold (12 September 2001)

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