Yet the NatWest bank says business confidence in the region is on the up.
The bank, which is the leading bank for business lending in the UK, has seen an active start to Cumbria’s leisure and hospitality sector in 2023. The bank’s team of corporate customer relationship managers operating across Cumbria finalised deals of more than £40 million in 2022, with leisure and tourism accounting for almost three-quarters of the team’s total lending in the region.
Jason Bain, director of commercial banking in Cumbria and Lancashire, said: “The challenges of the economic environment are widely reported, but they often don’t paint the full picture and, as an active lender to the sector, we perhaps benefit from a more forward-looking vantage point. This year has been off to a promising start in terms of lending to the hospitality and tourism sectors in the region. The team have supported more than 16 local businesses.”
The business types seeing most activity with the bank are hotels, restaurants and caravan parks, with many eyeing opportunities to cater for a new, younger demographic of customer. The trend is borne out by Cumbria Tourism stats, which show that the age of visitors is coming down, with the area attracting more younger visitors. In total, 65 per cent of visitors to Cumbria are between 25 and 59 years of age, up from 45 per cent in 2018.
Kate Hustler, who bought the Grasmere Hotel in March this year with the help of a finance package from NatWest, puts this demographic shift down to younger people reviewing their priorities post pandemic. She said: “This year has been no different in that as soon the sun comes out and the weather begins to warm up, visitors start to arrive. But what is noticeable, though, is that we’re getting more younger visitors than we ever did. I think this is an after effect of the pandemic.
“Younger people spent more time outdoors in the UK when travel options were limited and many of them became more attracted to and interested in nature.”
