The hospitality sector has been particularly hard hit by Covid-19. There is a high correlation of local economies particularly dependent on this sector in tourist areas. Many of these are coastal communities. I have a specific proposal for how to improve coastal economies which I have put forward in question 2.
In general, however local economies are heavily skewed towards the hospitality sector in tourist “hot spots”. Those working in this sector have been particularly hard hit because wages are lower than the national average. Also, much of the work is seasonal and many of those working in this sector are self- employed. As a result, many have “fallen through the cracks” as far as government support is concerned during lockdown and tiered restrictions. The fallout from Covid-19 will be particularly hard on people in these communities.
And it is surprising just how much economies in tourist locations are skewed towards the hospitality sector. Local governments are aware of this and in many cases do their level best to develop better skilled full time business opportunities that operate year-round. Central government should specifically allocate funds to local government for business development in rural communities where there is a high dependency on the hospitality sector. This will help to rebalance these economies, improve local welfare, and ultimately make savings in benefit dependency.