THE coronavirus pandemic has cost Cumbria's visitor economy a staggering £2 billion and led employment in the sector to shrink by 38,000.

That is according to statistics produced annually on behalf of a partnership including Cumbria Tourism and the Lake District National Park Authority.

The figures suggest that the number of full-time equivalent positions within Cumbria's tourism sector has fallen by 60 per cent.

Cumbria Tourism is now calling on the government to commit to 'four key proposals' to safeguard the industry and stop more jobs being lost.

“Businesses have now faced effectively three winter seasons in a row,” said Gill Haigh, Cumbria Tourism managing director.

“Whilst support from the government has helped keep heads just above water, this latest research highlights the fact that the coffers of many businesses are emptying quickly and need continued appropriate support.

“Of course, the first priority must be the management of the pandemic, but it is vital that the tourism sector, which has often gone above and beyond to help protect visitors, staff and communities, is not hung out to dry.

"We are grateful for the current support, but many are still ineligible for these schemes, and those that are still face significant costs.

"For example, the furlough scheme does not cover national insurance and pension contributions.

"As such, employers are still paying around 15 per cent of their wage bills although unable to trade – effectively being punished for protecting their staff from redundancy.”

Cumbria Tourism is calling for:

1- Continuation of relaxed business rates for a further year.

2 - An extension of the 5 per cent VAT rate until at least October, preferably permanently.

3 - A tapered extension of the furlough scheme beyond April 2021 to help businesses return to full capacity.

4 - Support and investment in destination management organisations, such as Cumbria Tourism, to help increase markets, extend stays, increase spend and drive business as restrictions ease.

Alongside national lobbying, Cumbria Tourism is conversing with the county's MPs in order to provide a 'strong and unified voice'.

Ms Haigh said: "Cash resources are depleting quickly and lack of liquid funds is now the key priority for businesses, according to our latest tracker survey.

"Many have had to turn to government-backed loan schemes to stay afloat, pledging to repay thousands without knowing when, or indeed if, they will be able to reopen their doors.

"It’s therefore of little surprise that the same survey shows that over 40 per cent of businesses are not confident they will survive to see Easter.

"Businesses need extra support and they need it fast.”